Loading...
HomeMy WebLinkAbout4.1 Annual Report of the Audit Committee and Acceptance of Annual Comprehensive Financial Report (ACFR) For The Year Ended On December 31, 2021Mr�GauC �'d'+rt;�iect Subject Annual Report ofthe Audit Committee and Acceptance ofAnnualComprehensive Financial Report (ACFR) For The Year Ended On December 31j, 2021. Meeting July 19, 2022 - REGULAR MEETING OF THE MOUNT PROSPECT VILLAGE BOARD - Fiscal Impact Dollar Amount Budget source Category MAYORS• Type Action Item Information The Audit Committee has prepared its annual report to the Village Board on Committee activities for the past year. A primary function of the Audit Committee is to provide oversight on the annual audit process. The Audit process for the year 2021 has been concluded. The report of the Audit Committee, along with Annual Comprehensive Financial Report (ACFR) is provided to the Village Board for review and final acceptance. The Audit Committee Chair and staff will be on hand to present the information and answer questions on the recently concluded audit process for the year 2021. Please follow the link to View 2021 ACFR - Click Here The major highlights of the 2021 Audit are: a) The audit firm of Lauterbach & Amen, LLP performed the Village's external audit. This audit marked the second year of a five-year engagement with the Village. b) For the year 2021, the independent audit firm Lauterbach & Amen, LLP has issued a clean and unqualified opinion (highest possible) on the financial statements. Per the audit report, the financial statements are free from any 1 material misstatement, and it fairly represents the financial condition of the Village. The financial statements are prepared in accordance with the generally accepted accounting principals and standards issued by the Government Accounting Standard Board. c) The General Fund Reserves are $34.8 million, of which $30.8 million is unrestricted. The Village's General Fund reported remarkable growth in the Intergovernmental Revenues. The sales tax, income tax, use tax, ambulance billing fees and a few other outperforming revenues allowed the Village to add $8.6 million in the overall reserves of the General Fund. All the Village Departments performed within their approved budgetary constraints and were reported under -budget. d) The overall Governmental Activity Fund Balance is $51.5 million, of which $30.8 million is unrestricted. e) The overall Business Type activity Fund Balance is $45.5 million, of which $29.7 million is invested in capital assets and infrastructures. f) Police and Fire Pension Funds are showing the funded ratio of 68.0 percent and 32% unfunded liability totals at $40.0 million for Fire and $45.2 million for Police. g) The Management Letter communicates if there are any material weaknesses in the internal controls, and the auditor has identified none. h) There are two new recommendation on the Management Letters. During the year 2021, the Business District Fund reported $83,245 in expenditures over the approved budget. The Fund acts as an escrow account and based on the revenues collected, incentives are shared. The Fund collected more revenues than originally budgeted, which resulted in higher amount of incentive sharing. The sales tax data from the State were not available in time and staff were not able to execute final amendments before the final audit. The excessive expenditure over the budget did not result in any financial loss or burden on the Village. Also, per the current Fund Balance Policy, the Flood Control Construction Fund should have a minimum fund balance of $810,102. Instead, the fund balance is $8,120. The Administration acknowledged the comment. There is no dedicated funding source for the Flood Control fund at this time. The currently allocated Home -Rule Sales Tax is tied up in debt service obligations until 2033. Staff will work with the Village Board and Finance Commission to establish a stable funding source, which may allow the Village to meet the Fund Balance Policy requirements in the future. i) The ACFR also included the Certificate of Achievement for Excellence in the Financial Reporting received from GFOA for 2020 Audit. This marks 28th 2 consecutive year of the Village receiving this award. The Village has also submitted the 2021. Alternatives 1. Accept the annual report of the Audit Committee and Comprehensive Annual Financial Report of the Village for the year ended on December 31, 2021. 2. Action at the discretion of Village Board. Staff Recommendation Accept the Annual Report of the Audit Committee and Annual Comprehensive Financial Report (ACFR) for the year ended on December 31, 2021. ATTACHMENTS: Annual Report Audit Committee - 2021.pdf Mount Prospect ACFR 1221.pdf Mount Prospect SAS 114 1221.pdf KI .Village of Mount Prospect wntr p( Mount Prospect, Illinois INTEROFFICE MEMORANDUM 1 TO: VILLAGE PRESIDENT AND BOARD OF TRUSTEES FROM: VINCENT GROCHOCINSKI, AUDIT COMMITTEE CHAIR DATE: JULY 12, 2022 SUBJECT: ANNUAL REPORT OF AUDIT COMMITTEE — 2021 The audit for the fiscal year 2021 is complete and included as part of your materials for review and acceptance. The audit firm of Lauterbach & Amen, LLP performed the Village's external audit. This audit marked the second year of a five-year engagement with the Village. The Audit Committee met on June 13, 2022, to discuss the 2021 audit report and findings. The meeting agenda included discussing the results of the 2021 Annual Comprehensive Financial Report (ACFR), Auditor Communication to the Village Board, and Management Letter comments as prepared by Lauterbach & Amen. Audit Committee activities included: • At the June 13 meeting, the Audit Committee met with the Village staff and the Audit Partner in charge of the audit, Matt Beran. A presentation on the 2021 audit was made by staff and Auditors. Items discussed included the overall results of the audit, financial statement, audit opinion, and management letter items. The following are some of the significant items from the 2021 Audit. • On page 12 of the Comprehensive Annual Financial Report, the firm expresses its opinion that the financial statements present fairly in all respects the financial position for the year ended December 31, 2021, in accordance with generally accepting accounting principles. o While the actual statement at the top of the page is much more detailed, it is the key statement from the audit firm demonstrating that they found no significant issues that impact their overall determination on the accuracy of the Village's financial statements and position. o Other items and comments on Financials: ■ The General Fund Reserves are $34.8 million, of which $30.8 million is unrestricted. The Village's General Fund reported remarkable growth in the Intergovernmental Revenues. The sales tax, income tax, use tax, ambulance billing fees and a few other outperforming revenues allowed the Village to add $8.6 million in the overall reserves of the General Fund. All the Village Departments performed within their approved budgetary constraints and were reported under -budget. ■ The overall Governmental Activity Fund Balance is $51.5 million, of which $30.8 4 Annual Report of Audit Committee — 2021 Activities July 12, 2021 Page 2 million is unrestricted. ■ The overall Business Type activity Fund Balance is $45.5 million, of which $29.7 million is invested in capital assets and infrastructures. ■ Police and Fire Pension Funds are showing the funded ratio of 68.0 percent and 32% unfunded liability totals at $40.0 million for Fire and $45.2 million for Police. • The Committee also reviewed the audit firm's Management Letter and Auditor Communication to the Board that accompanied the audit report. The Management Letter communicates whether there are any material weaknesses in internal control. The Auditor identified as below: o The Business District Fund has an excess of actual expenditures over budget by $83,245. ■ The Administration acknowledged the comment and responded that due to a delay in the sales tax data from the State, the Administration was not able to execute the budget amendment before the audit. Since the overall performance of the Randhurst Mall businesses was better than originally expected, it resulted in a higher amount to be shared and resulted in excess of actual expenditure. The Business District Fund acts as an escrow fund, and higher revenues resulted in sharing of higher incentives/expenditures. The excess of expenditures over the budget did not impact the overall financial health of the Village. o Per the current Fund Balance Policy, the Flood Control Construction Fund should have a minimum fund balance of $810,102. Instead, the fund balance is $8,120. ■ The Administration acknowledged the comment. There is no dedicated funding source for the Flood Control fund at this time. The currently allocated Home -Rule Sales Tax is tied up in debt service obligations until 2033. Staff will work with the Village Board and Finance Commission to establish a stable funding source, which may allow the Village to meet the Fund Balance Policy requirements in the future. • Other information provided in the auditor communication for 2021 included future accounting pronouncements. These future pronouncements are changes to accounting rules that may have an impact on Village finances in the future. The major pronouncement is GASB 87 about leases and will be implemented in the coming years. • The final item we are highlighting from the Comprehensive Annual Financial Report is under the first tab (Introduction). On page 9 is the Certificate of Achievement for Excellence in Financial Reporting that the Village received for its 2020 report. This marks the 28th consecutive year the Village has received this award. Application has been made to the Certificate program for the fiscal year 2021. Notice of the 2021 award is expected in early 2023. • The Auditor also commended the efforts carried out by the staff. They were impressed with the amount of work performed ahead of their arrival. Each and every request was handled in a timely manner, and overall, books are kept very neat and clean. Please contact me should you have any questions or need additional information related to this report or the Audit Committee activities. Respectfully Submitted, Vincent Grochocinski 5 VILLAGE OF MOUNT PROSPECT, ILLINOIS ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2021 Prepared by: Finance Department Amit R. Thakkar Director of Finance Jennifer Fitzgerald Assistant to the Director of Finance 7 VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS INTRODUCTORY SECTION PAGE List of Principal Officials 1 Organizational Chart 2 Letter of Transmittal 3 Certificate of Achievement for Excellence in Financial Reporting 9 FINANCIAL SECTION INDEPENDENT AUDITORS' REPORT 12 MANAGEMENT'S DISCUSSION AND ANALYSIS 16 BASIC FINANCIAL STATEMENTS Government -Wide Financial Statements Statement of Net Position 30 Statement of Activities 32 Fund Financial Statements Balance Sheet - Governmental Funds 34 Reconciliation of Total Governmental Fund Balance to the Statement of Net Position - Governmental Activities 36 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 38 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities - Governmental Activities 40 Statement of Net Position - Proprietary Funds 42 Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Funds 44 Statement of Cash Flows - Proprietary 45 Statement of Fiduciary Net Position 46 Statement of Changes in Fiduciary Net Position 47 Notes to the Financial Statements 48 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Employer Contributions Illinois Municipal Retirement Fund 105 Police Pension Fund 106 Firefighters' Pension Fund 107 0 VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS PAGE FINANCIAL SECTION - Continued REQUIRED SUPPLEMENTARY INFORMATION - Continued Schedule of Changes in the Employer's Net Pension Liability/(Asset) Illinois Municipal Retirement Fund 108 Police Pension Fund 110 Firefighters' Pension Fund 112 Schedule of Investment Returns Police Pension Fund 114 Firefighters' Pension Fund 115 Schedule of Changes in the Employer's Total OPEB Liability 126 Retiree Benefit Plan 116 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 143 General Fund 117 Prospect/Main TIF - Special Revenue Fund 118 OTHER SUPPLEMENTARY INFORMATION Governmental Funds Major Governmental Funds General Fund Schedule of Revenues - Budget and Actual 122 Schedule of Expenditures - Budget and Actual 125 Schedule of Detailed Expenditures - Budget and Actual 126 Debt Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 143 Police and Fire Building Construction - Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 144 Nonmajor Governmental Funds Combining Balance Sheet 147 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 148 Nonmajor Special Revenue Funds Combining Balance Sheet 150 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 152 Motor Fuel Tax - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 154 Schedule of Expenditures - Budget and Actual 155 Refuse Disposal - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 156 Schedule of Revenues - Budget and Actual 157 0 VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS FINANCIAL SECTION - Continued PAGE OTHER SUPPLEMENTARY INFORMATION - Continued Community Development Block Grant - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 158 Asset Seizure - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 159 Federal Equitable Share - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 160 DUI Fines - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 161 Foreign Fire Insurance - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 162 Business District - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 163 Nonmajor Capital Projects Funds Combining Balance Sheet 164 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 165 Capital Improvement- Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 166 Schedule of Expenditures - Budget and Actual 167 Flood Control Construction - Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 168 Schedule of Expenditures - Budget and Actual 169 Street Improvement Construction - Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 170 Proprietary Funds Enterprise Funds Water and Sewer Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual 173 Schedule of Operating Revenues 174 Schedule of Operating Expenses - Budget and Actual 175 Nonmajor Enterprise Funds Combining Statement of Net Position 178 Combining Statement of Revenues, Expenses and Changes in Net Position 179 Combining Statement of Cash Flows 180 Parking System Revenue Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual 181 Schedule of Operating Expenses - Budget and Actual 182 10 VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS FINANCIAL SECTION - Continued PAGE OTHER SUPPLEMENTARY INFORMATION - Continued Village Parking System Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual 183 Schedule of Operating Expenses - Budget and Actual 184 Internal Service Funds Combining Statement of Net Position 187 Combining Statement of Revenues, Expenses and Changes in Net Position 188 Combining Statement of Cash Flows 191 Computer Replacement Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual 193 Schedule of Operating Expenses - Budget and Actual 194 Risk Management Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual 195 Schedule of Operating Revenues 196 Schedule of Operating Expenses - Budget and Actual 197 Vehicle Replacement Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual 198 Schedule of Operating Revenues 199 Schedule of Operating Expenses - Budget and Actual 200 Vehicle Maintenance Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual 201 Schedule of Operating Revenues 202 Schedule of Operating Expenses - Budget and Actual 203 Fiduciary Funds Pension Trust Funds Combining Statement of Fiduciary Net Position 205 Combining Statement of Changes in Fiduciary Net Position 206 Consolidated Year -End Financial Report 207 SUPPLEMENTAL SCHEDULES General Long -Term Debt Long -Term Debt Payable by Governmental Funds 210 11 VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS PAGE FINANCIAL SECTION - Continued SUPPLEMENTAL SCHEDULES - Continued Long -Term Debt Requirements General Obligation Bonds of 2012 212 General Obligation Bonds of 2013 213 General Obligation Bonds of 2014 214 General Obligation Refunding Bonds of 2016 215 General Obligation Refunding Bonds of 2016A 216 General Obligation Bonds of 2017 217 General Obligation Bonds of 2018A 218 General Obligation Bonds of 2018B 219 General Obligation Bonds of 2019A 220 General Obligation Bonds of 2019B 221 STATISTICAL SECTION (Unaudited) Net Position by Component - Last Ten Fiscal Years 224 Changes in Net Position - Last Ten Fiscal Years 226 Fund Balances of Governmental Funds - Last Ten Fiscal Years 228 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 230 Assessed Value and Actual Value of Taxable Property - Last Ten Tax Levy Years 232 Direct and Overlapping Property Tax Rates - Last Ten Tax Levy Years 234 Principal Property Tax Payers - Current Fiscal Year and Nine Fiscal Years Ago 236 Property Tax Levies and Collections - Last Ten Fiscal Years 237 Sales Taxes by Category - Last Ten Fiscal Years 238 Business District Sales Taxes by Category - Last Ten Fiscal Years 240 Home Rule Sales Taxes by Category - Last Ten Fiscal Years 242 Direct and Overlapping Sales Tax Rates - Last Ten Fiscal Years 244 Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 245 Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years 246 Schedule of Direct and Overlapping Governmental Activities Debt 247 Schedule of Legal Debt Margin 248 Demographic and Economic Statistics - Last Ten Fiscal Years 249 Principal Employers - Current Fiscal Year and Nine Fiscal Years Ago 250 Full -Time Equivalent Employees by Function/Program - Last Ten Fiscal Years 252 Operating Indicators by Function/Program - Last Ten Fiscal Years 254 Capital Asset Statistics by Function/Program - Last Ten Fiscal Years 256 Additional Disclosures Required by SEC Rule 15c2-12 259 12 INTRODUCTORY SECTION This section includes miscellaneous data regarding the Village including: • List of Principal Officials • Organizational Chart • Letter of Transmittal • Certificate of Achievement for Excellence in Financial Reporting 13 VILLAGE OF MOUNT PROSPECT, ILLINOIS Principal Officials December 31, 2021 Agostino S. Filippone Terri Gens John J. Matuszak LEGISLATIVE Mayor Paul Wm. Hoefert Trustees Peggy Pissarreck Richard F. Rogers Colleen E. Saccotelli ADMINISTRATION Michael J. Cassady, Village Manager Nellie S. Beckner, Assistant Village Manager Karen Agoranos, Village Clerk Amit R. Thakkar, Director of Finance/Treasurer William J. Cooney, Jr., Director of Community Development William M. Schroeder, Director of Building and Inspection Services Julie K. Kane, Director of Human Services Michael Eterno, Chief of Police John Dolan, Fire Chief Sean P. Dorsey, Director of Public Works 1 14 VILLAGE OF MOUNT PROSPECT, ILLINOIS Organizational Structure 15 MAYOR Paul Wm. Hoefert TRUSTEES Agostino S. Filippone Terri Gens John J. Matuszak Peggy Pissarreck Richard F. Rogers Colleen E. Saccotelli June 6, 2022 Village of Mount Prospect 50 S. Emerson Street, Mount Prospect, Illinois 60056 The Honorable Paul W. Hoefert, Village President Members of the Board of Trustees Village Manager Michael J. Cassady, and Citizens of the Village of Mount Prospect, Illinois VILLAGE MANAGER Michael J. Cassady VILLAGE CLERK Karen Agoranos Phone: 847/392-6000 Fax: 847/392-6022 www.mountprospect.org The Annual Comprehensive Financial Report of the Village of Mount Prospect, Illinois for the fiscal year ended December 31, 2021 is submitted herewith. The report consists of management's representations concerning the finances of the Village of Mount Prospect. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the Village. To provide a reasonable basis for making these representations, management of the Village has established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft or misuse and to compile sufficient reliable information for the preparation of the Village of Mount Prospect's financial statements in conformity with Generally Accepted Accounting Principles (GAAP). Because the cost of internal controls should not outweigh their benefits, the Village's comprehensive framework on internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. The Village has implemented GASB Statement No. 34, Basic Financial Statements — and Management Discussion and Analysis - for state and local governments, including infrastructure reporting. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The Village's financial statements have been audited by Lauterbach & Amen, LLP, a firm of licensed certified public accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of the Village of Mount Prospect for the year ended December 31, 2021 are free from material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded based upon their audit that there was a reasonable basis for rendering an unmodified opinion that the Village's financial statements for the fiscal year ended December 31, 2021 are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report. GAAP requires that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The Village's MD&A can be found immediately following the report of the independent auditors. 3 16 Profile of the Village of Mount Prospect The Village of Mount Prospect, a home rule community as defined by the Illinois Constitution, was incorporated on February 3, 1917 and is located 23 miles northwest from downtown Chicago in Cook County. The Village currently has land area of 10.8 square miles and a population of 56,852 (2020 Census). The Village operates under the Council/Manager form of government. Policymaking and legislative authority are vested in the Village Board, which consists of a Mayor and six -member Board of Trustees. The Village Board is responsible for, among other things, passing ordinances, adopting the budget, appointing committee members and hiring the Village Manager. The Village Manager is responsible for carrying out the policies and ordinances of the Village Board, overseeing the day-to-day operations of the Village, and appointing the heads of the Village's departments. The Board is elected on a non-partisan basis. Board members are elected to four-year staggered terms with three Board members elected every two years. The Mayor is elected to a four-year term. The Mayor and Village Trustees are elected at large. The Village provides a full range of services including police, fire, public works (including water and sewer), human services, finance, community development and communication (television) services. The annual budget serves as the foundation for the Village's financial planning and control. All departments of the Village are required to submit their budget requests to the Finance Director by mid-July each year. Revenue estimates are completed by the Finance Department in preparation for departmental budget reviews with the Village Manager and Finance Director in early August. Initial budget requests are compiled by the end of August. A proposed budget is prepared and delivered to the Village Board and Finance Commission at the end of September. The proposed budget is also made available for public inspection in the Village Clerk's Office, on the Village website and at the Mount Prospect Public Library. A series of workshops are held with members of the Village Board and Finance Commission in October and November. The Finance Commission also meets separately with staff in October. The Village Board is required to hold a public hearing on the proposed budget and to adopt a final budget no later than December 31st of each year, the close of the Village's previous budget year. The budget is prepared by fund and by department. Expense cost centers are created within departments giving a true picture of the cost of providing a particular service (e.g., Police Department Investigations). Budget amendments require approval of the Village Board. Budget -to -actual comparisons are provided for each individual governmental fund for which an appropriated annual budget has been adopted. For the General Corporate Fund and major special revenue funds, this comparison is presented in the required supplementary information. For governmental funds, other than the General Corporate Fund and major special revenue funds, with appropriated annual budgets, this comparison is presented in the non -major governmental fund subsection of this report. Major Initiatives The Village staff, following directives of the Village Board and the Village Manager, has been involved in a variety of projects throughout the year - projects which reflect initiatives found in the Village's Strategic Plan and a commitment to ensuring its citizens are able to live and work in an enviable environment. Below is a list of the more significant accomplishments and initiatives that address various goals identified for 2021. COVID-19 Pandemic — COVID-19, a global pandemic started in February 2020, impacted the Village operations starting in March 2020, and continued for the most of the year 2021. The Village was quick to implement strategies to minimize the impact of COVID-19. The Village quickly adopted a new normal in the COVID environment and changed its operation as warranted by time. Many of the Village's staff worked in a hybrid environment. In spite of the hybrid environment, there was no impact on any of the service levels. The Village staff performed beyond expectations on many occasions and provided excellent customer service. The Village operations continued without any interruptions. 4 17 • Levee 37 Plan — The Village successfully secured $3,000,000 in grant funding for the Levee 37 Phase II improvements at Aspen Trails Park. The major part of the project was completed during the year 2021 and residents have already seen the improvements during major rain events. • Prospect Place Redevelopment — The Village entered into a TIF redevelopment agreement with First Equity Group. First Equity Group will be conducting a $26.8 million redevelopment investment to what is currently known as Prospect Place. The project includes a five story mixed-use building, which includes first floor commercial space with underground and surface parking for the building's residents. The project is expected to be completed in 2023. • HQ Residence Project: The Village entered into a TIF redevelopment agreement with T2 Capital Management, LLC to demolish and redevelop its old Police and Fire HQ building. The redevelopment is named HQ Residence and will have 6 -storey 88 luxury rental units and 3,500 sq. ft. of retail space. The project is expected to be completed in 2025. • Cloud HQ: The old United Airline HQ campus in the Village of Mount Prospect was bought by a well- known cloud/data center construction and management company called Cloud HQ. Cloud HQ will be building a 1.8 million sq. ft. data center and will be investing $2.5 billion in the Village of Mount Prospect. The project is expected to bring over 1,000 construction jobs and upon completion, the job site will employ more than 450 full-time engineers, security and maintenance personnel. The project is very crucial for the Village and is expected to bring in significant revenues from property and utility taxes. • Sidewalk Policy & Program — The Village successfully implemented various strategies to repair the sidewalks and have mitigated over 2,000 vertical offsets in the Village's sidewalk network. • Street Lights Program — The Village completed the conversion of 80 streetlights to LED fixtures, reducing energy usage on Central Road. • Traffic Control on Major Corridors — The Village completed Phase I engineering for the Rand Road/ Central Road/Mount Prospect Road intersection. The Village also started Phase I engineering for the Rand Road/Kensington Road/Route 83 intersection. • Interconnect: The Village will be deploying $5.5 million from the American Rescue Plan toward an interconnect project with the Northwest Water Commission. The project will provide a backup source for the water supply and will allow the Village to discontinue some of its deep wells, which may be contaminated and may not provide drinking water in the long run. • South Mount Prospect TIF: The Village started working on the South Mount Prospect TIF, which will also provide crucial support for the redevelopment of the South Mount Prospect. The South Mount Prospect TIF obtained approval from the Village Board on May 3, 2022. Refer to the Strategic Plan tab of the 2022 Annual Budget document for a complete listing of major initiatives and accomplishments. All Departments continue to perform exceptionally well by delivering high quality services to our residents and business community. Initiatives included in the Village's strategic plan have provided a focus for these services. The Village's Annual Budget and Audit Documents were again recognized for their clarity and usability and Mount Prospect was recognized as a Tree City U.S.A. for the 37th consecutive year. Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the Village operates. 18 Global Pandemic. COVID-19 was uncharted territory for every organization, and the Village of Mount Prospect is not an exception to this fact. The Village had adopted a contingency plan in early 2020, but the Village's revenue base performed excellently and the Village did not experience any major revenue losses. The Village and the region experienced the peak of the COVID-19 health impact in 2021. In spite of the pandemic, the local economy and the market conditions were very positive. Due to the positive economic trends, the Village collected all-time high state sales tax, home rule sales tax and income tax (Local Governmental Distributive Fund). The Village emerged much stronger and has maintained a healthy fund and cash balance as of December 2021. Local economy. The Village continues to benefit from growth in the local economy. There are a number of factors that influence the economy of a specific community, and various measures are used to gauge the economic outlook. Perhaps four of the most objective measures are the level of retail sales, the employment level of the community, income levels in the community and building activity. In Illinois, sales taxes are allocated based upon the point-of-sale and accordingly represent the sales in the community. Total state sales tax receipts received during the calendar year ended December 31, 2021 were $29.3 million compared to $21.9 million for the previous year, an increase of 33.7 percent. The prior year sales were impacted by COVID-19. The Village has seen an extraordinary growth in the sales tax revenue in 2021 due to an outperformance in a particular business segment. Since the Village's portion of sales tax receipts is based on a 1% tax rate, these receipts represent total retail sales of approximately $2.9 billion for 2021. The segment generating the most sales tax contains products with inelastic demand, which protects the Village's sales tax revenue. Besides that, the 2020 Census data reflected an increase of 2,685 in the Village's population. The newly added population counts will result in additional per capita allocation from the State of Illinois (income tax, motor fuel tax and use tax). The current rate of inflation, labor shortage, supply chain issues, global uncertainties, market conditions and certain other external factors are affecting the regional economy and the Village is not an exception to these impacts. The Village is in a strong financial position and has no immediate concern about any short-term impacts of these factors. However, staff is evaluating long-term impacts of these factors and working to create an improvised financial plan that can provide sustainable and long-term support for the Village's operations. The Village is divided mainly between Elk Grove Township and Wheeling Township, and there is a small portion of the Village within the jurisdiction of Maine Township. Due to the recent triennial assessment in 2019, the Elk Grove Township assessed values increased on average by 53 percent, while the same increased by 31 percent in Wheeling Township. The increases in assessed value has restored the equalized assessed value of the Village back to its 2008 - 2009 level. The total equalized assessed value for the tax year 2020 (after exemptions) was $1,991,342,982. With new development in downtown Mount Prospect, the equalized assessed value for the Village and its Prospect & Main Tax Increment Financing District is expected to improve further for the tax year 2021 (tax payable in 2022). Mount Prospect's average unemployment during 2021 was 2.9%. This is a significant decrease from the prior year (6.6% in 2020). The average unemployment rate for Cook County for 2021 was 4.7%, while the same for the State of Illinois was 5.5%. Mount Prospect's median family income of $84,353 as of July 1, 2021 (per the census.gov data) was 24% higher than the median for Cook County ($67,886) and 23% higher than the median for the State of Illinois ($68,428). 19 The Village is strategically located in the middle of a thriving economic activity center for the Midwest region of our country. It is close to major interstate highways including I-90 and I-294, while its proximity to O'Hare International Airport makes the Village's location a prime spot. The Village's commercial and industrial real estate has a very low vacancy rate and, in spite of the pandemic, the Village revenues have performed consistently due to a strong and diversified tax base. The United Airline HQ Campus was bought by Cloud HQ in December 2021. Cloud HQ has proposed a 1.8 million sq. ft. data center and will be investing $2.5 billion in the Village of Mount Prospect. The Village is connected to the "Golden Corridor," which extends Interstate 90 from O'Hare to Elgin, which makes the Village a desirable location for commercial and industrial ventures as well as for corporate headquarters for many mid to large-scale companies. Long-term financial planning. In 2003, the Village conducted its first long-range financial planning workshop. The workshop was held in response to the slowing economy and its impact to the Village's financial condition. The goal of the workshop was to put the Village's financial condition back on firm ground in such a manner as to not overburden residents and businesses from a tax standpoint or reduce the scope and quality of municipal services that would jeopardize the livability and curb appeal of the community. The goal of the workshop was accomplished through a series of revenue enhancements, budget cuts and the planned drawdown of fund balance. Subsequent workshops continued into 2021. During the 2021 workshop, financial status reports were provided for end -of -year results for 2020, updated projections for 2021 and a revised forecast for 2022. Two additional tools have been developed in managing the long-range finances of the Village. The first is a Five - Year Community Investment Program that outlines the major capital expenditure/project initiatives of the Village over the next five years and identifies funding sources. Over the next five years (2022-2026), the Village has identified $160.5 million in water and sewer, flood control, street, public building, equipment and other miscellaneous capital projects. The second is the Village Strategic Plan for 2022 completed in early 2021. The strategic plan provides the mission, vision, and goals for vision attainment along with the strategic action plan of the organization. An implementation guide was developed in May 2021 using the goals identified in the Strategic Plan. This implementation guide provides the objectives, short-term challenges and opportunities, and action items to be taken for accomplishing the goals of the Village. Action items were prioritized as top or high priority by the Village Board and fall into three categories: Policy Agenda, Management Agenda and Management in Progress. The implementation guide is updated annually, reflecting work completed and changing priorities. Funding of initiatives identified in the strategic plan will receive a higher priority during the budget process. Awards. The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Village of Mount Prospect for its comprehensive annual financial report for the year ending December 31, 2020. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of only one year. The Village of Mount Prospect has received Certificates of Achievement since 1983. It is believed that the current report continues to conform to the Certificate of Achievement program requirements, and will be submitted to GFOA for evaluation. In addition, the Village of Mount Prospect also received the Government Finance Officers Association's Award for Distinguished Budget Presentation for its annual budget for the fiscal year beginning January 1, 2021 and ending December 31, 2021. In order to qualify for the Distinguished Budget Presentation Award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. The Village of Mount Prospect has received this award each year since 1994. The Village is awaiting word as to whether it received the Budget Award for its 2022 Budget document. 7 20 Acknowledgements The preparation of this report on a timely basis could not have been accomplished without the efficient and dedicated services of the entire staff of the Finance Department. I would like to express special appreciation to Jennifer Fitzgerald - Deputy Finance Director, Accountants Rumiana Nihtianova and Terri Atienza, and our AP and Risk Coordinator Mike Grochocki, who contributed greatly to its preparation. Additionally, I would like to acknowledge the Mayor, the Board of Trustees, the Finance Commission, the Audit Committee and Village Manager for their leadership and support in planning and conducting the financial affairs of the Village in a responsible and progressive manner. Respectfully submitted, 1 6 - ;P Z� �zl Amit R. Thakkar Finance Director 21 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Village of Mount Prospect Illinois For its Annual Comprehensive Financial Report For the Fiscal Year Ended December 31, 2020 r I I Executive Director/CEO 9 22 FINANCIAL SECTION This section includes: Independent Auditors' Report Management's Discussion and Analysis Basic Financial Statements Required Supplementary Information Other Supplementary Information Supplemental Schedules 10 23 INDEPENDENT AUDITORS' REPORT This section includes the opinion of the Village's' independent auditing firm. 11 24 668 N. RIVER ROAD • NAPERVILLE, ILLINOIS IINOIS 60563 PHONE: 630.393 1483 • FAX 630.393 251 5 www.laxiteirba-a(,,~txi ieii.r,oin7 CERTIFIED PUBI.AC; ACCOUNTANTS INDEPENDENT AUDITORS' REPORT June 6, 2022 The Honorable Mayor Members of the Board of Trustees Village of Mount Prospect, Illinois Report on the Audit of the Financial Statements Opinion We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the Village of Mount Prospect, Illinois, as of and for the year ended December 31, 2021, and the related notes to the financial statements, which collectively comprise the Village's basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the Village, as of December 31, 2021, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Village, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Village's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 12 25 Village of Mount Prospect, Illinois June 6, 2022 Page 2 Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Village's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Village's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control -related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and budgetary comparison information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary infonnation in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 13 26 Village of Mount Prospect, Illinois June 6, 2022 Page 3 Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Village of Mount Prospect, Illinois' basic financial statements. The other supplementary information and supplemental schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, other supplementary information and supplemental schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 6, 2022, on our consideration of the Village's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Village's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Village's internal control over financial reporting and compliance. Z"6?4" &,46464, zz;) LAUTERBACH & AMEN, LLP 14 27 MANAGEMENT'S DISCUSSION AND ANALYSIS 15 28 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS For the Fiscal Year Ended December 31, 2021 The Village of Mount Prospect (the "Village") Management's Discussion and Analysis is designed to (1) assist the reader in focusing on significant issues, (2) provide an overview of the Village's financial activity, (3) identify changes in the Village's financial position (its ability to address the next and subsequent year challenges), (4) identify any material deviations from the financial plan (the approved budget), and (5) identify individual fund issues or concerns. Since the Management's Discussion and Analysis (MD&A) is designed to focus on the current year's activities, resulting changes and currently known facts, please read it in conjunction with the Transmittal Letter, and the Village's financial statements. USING THE FINANCIAL SECTION OF THIS ANNUAL COMPREHENSIVE FINANCIAL REPORT The primary focus of local governmental financial statements had been to summarize fund type information on a current financial resource basis. This approach was modified by Governmental Accounting Standards Board (GASB) Statement No. 34. As a result, these financial statements now present two kinds of statements, each with a different snapshot of the Village's finances. The financial statement's focus under GASB Statement No. 34 is on both the Village as a whole (government -wide) and on the major individual funds. Both perspectives (government -wide and major fund) allow the user to address relevant questions, broaden a basis for comparison (year to year or government to government) and enhance the Village's accountability. Government -Wide Financial Statements The government -wide financial statements are designed to be corporate -like in that all of the governmental and business -type activities are consolidated into columns that add to a total for the Primary Government. The focus of the Statement of Net Position (the "Unrestricted Net Position") is designed to be similar to bottom line results for the Village and its governmental and business -type activities. This statement combines and consolidates the governmental fund's current financial resources (short-term spendable resources) with capital assets and long- term obligations using the accrual basis of accounting and economic resources measurement focus. The Statement of Activities is focused on both the gross and net cost of various activities (including governmental and business -type), which are supported by the government's general taxes and other resources. This is intended to summarize and simplify the user's analysis of the cost of various governmental services and/or subsidy to various business -type activities. The governmental activities reflect the Village's basic services, including police, fire, public works, and administration. Property taxes, sales and income taxes and local utility taxes finance the majority of these services. The business -type activities reflect private sector type operations (water, sewer, and parking operations), where the fee for service typically covers all or most of the cost of operation, including depreciation. Fund Financial Statements Traditional users of governmental financial statements will find the Fund Financial Statements presentation more familiar. The focus is on major funds rather than (the previous model's) fund types. The Governmental Major Fund presentation is organized on a sources and uses of liquid resources basis. This is the manner in which the financial plan (the budget) is typically developed. The flow and availability of liquid resources is a clear and appropriate focus of any analysis of a government. Funds are established for various purposes and the Fund Financial Statement allows the demonstration of sources and uses and/or budgeting compliance associated therewith. (See independent auditor's report) 16 29 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) The Fund Financial Statements also allow the government to address its Fiduciary Funds (Pension Trust). While these funds represent trust responsibilities of the government, these assets are restricted in purpose and do not represent discretionary assets of the government. Therefore, these assets are not presented as part of the Government -Wide Financial Statements. While the Business -type Activities column on the Proprietary Fund Financial Statements is the same as the Business -type column on the Government -Wide Financial Statement, the Governmental Funds total column requires a reconciliation because of the different measurement focus (current financial resources versus total economic resources) which is reflected on the page following each statement. The flow of current financial resources will reflect bond proceeds and interfund transfers as other financial sources or uses, as well as capital expenditures and bond principal payments as expenditures. The reconciliation will eliminate these transactions and incorporate the capital assets and long-term obligation (bonds and others) into the Governmental Activities column (in the government -wide statements). Infrastructure Assets Historically, a government's largest group of assets (infrastructure - i.e., roads, bridges, storm sewers, etc.) have not been reported nor depreciated in governmental financial statements. GASB Statement No. 34 requires that these assets be valued and reported within the Governmental Activities column of the Government -wide Statements. Additionally, the government must elect to either (1) depreciate these assets over their estimated useful life or (2) develop a system of asset management designed to maintain the service delivery potential to near perpetuity. If the government develops the asset management system (the modified approach), which periodically (at least every third year), by category, measures and demonstrates its maintenance of locally established levels of service standards, the government may record its cost of maintenance in lieu of depreciation. The Village of Mount Prospect has chosen to depreciate assets over their useful life. If a road project is considered maintenance - a recurring cost that does not extend the road's original useful life or expand its capacity - the cost of the project will be expensed. An "overlay" of a road will be considered maintenance whereas a "rebuild" of a road will be capitalized. GOVERNMENT -WIDE STATEMENTS Statement of Net Position The Village's combined net position for the primary government increased from a negative $14.9 million, as restated, to a positive $15.6 million. The net increase of $30.6 million is mainly attributable to intergovernmental revenues including state sales tax, income tax, use tax, ambulance billing fees and government grants, as well as under budget performance by all the Village Departments. The net position for governmental activities is negative $29.8 million, while the net position for the business -type activities is a positive $45.5 million. Table 1 reflects the condensed Statement of Net Position. For more detailed information see the Statement of Net Position in the basic financial statements. (This space is intentionally left blank.) (See independent auditor's report) 17 30 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Table 1 Statement of Net Position As of December 31, 2021 (in millions) Current and Other Assets Capital Assets Total Assets Deferred Outflows of Resources Total Assets and Deferred Outflows of Resources Current Liabilities Noncurrent Liabilities Total Liabilities Deferred Inflows of Resources Total Liabilities and Deferred Inflows of Resources Net Position Net Investment in Capital Assets Restricted Unrestricted (Deficit) Total Net Position Governmental Activities Business -Type Activities Totals 2021 2020 2021 2020 2021 2020 $ 103.3 119.3 86.8 111.0 19.8 48.3 20.8 39.8 123.1 167.6 107.6 150.8 222.6 26.5 197.8 10.5 68.1 1.5 60.6 1.8 290.7 28.0 258.4 12.3 249.1 208.3 69.6 62.4 318.7 270.7 12.1 214.4 12.8 207.8 2.2 20.3 1.9 21.7 14.3 234.7 14.7 229.5 226.5 52.4 220.6 46.1 22.5 1.7 23.6 0.9 249.0 54.1 244.2 47.0 278.9 266.7 24.2 24.5 303.1 291.2 38.3 26.4 29.7 20.5 68.0 46.9 7.2 5.8 7.2 5.8 (75.3) (90.6) 15.8 17.3 (59.5) (73.3) (29.8) (58.4) 45.5 37.8 15.7 (20.6) (Note: There may be some slight differences in totals due to rounding.) Normal Impacts There are six basic (normal) transactions that will affect the comparability of the Statement of Net Position summary presentation. Net results of activities - which will impact (increase/decrease) current assets and unrestricted net position. Borrowingfor or capital - which will increase current assets and long-term debt. Spending borrowed proceeds on new capital - which will reduce current assets and increase capital assets. There is a second impact, an increase in invested in capital assets and an increase in related net debt which will not change the invested in capital assets, net of debt. Spending of non -borrowed current assets on new capital - which will (a) reduce current assets and increase capital assets and (b) will reduce unrestricted net position and increase invested in capital assets, net of debt. Principal payment on debt - which will (a) reduce current assets and reduce long-term debt and (b) reduce unrestricted net position and increase invested in capital assets, net of debt. Reduction of capital assets through depreciation - which will reduce capital assets and invested in capital assets, net of debt. (See independent auditor's report) 18 31 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Current Year Impacts Governmental activities net position increased by $28.5 million while the business -type activities net position increased by $2.0 million. The governmental activities total assets and deferred outflows increased by $40.9 million and the governmental activities total liabilities and deferred inflows increased by $12.4 million, of which $6.7 million of increases are attributable to the increases in the noncurrent liabilities. Increases in the net pension liability for Police and Fire Pension Funds are the main reason for the increase in the noncurrent liability. The total assets increased by $24.9 million in governmental activities. Of this amount, $16.5 million is due to increase in the current and other assets and $8.3 million in attributable to increase in the capital assets. The increase in deferred outflows of $16.0 million for the governmental activities was due to increases in the pension -related items for Police, Fire and IMRF pension funds. The net position of the business -type activities increased by $2.0 million. The increase in total net position is mainly attributable to the current surplus of revenues over expenditures. The business -type activities total assets and deferred outflows increased by $7.3 million and the business -type activities total liabilities and deferred inflows decreased by $0.3 million. The current assets decreased by $1.0 million, mainly attributable to the use of unspent bond proceeds in 2021 for the appropriate projects. The business -type capital assets increased by $8.6 million. The liabilities for business -type activities decreased from $23.6 million to $22.5 million. The noncurrent liabilities decreased by $1.5 million, mainly due to repayment of certain long-term debt obligations per the established debt service schedules. Changes in Net Position The Village's combined change in net position for the primary government in 2021 was an increase of $30.6 million versus an increase of $6.1 million in 2020. Activities for the governmental activities saw an increase in net position of $28.5 million from 2020, while activities for the business -type funds saw an increase in net position of $2.0 million from 2020. The following chart lists the revenues and expenses for the current and prior fiscal years. Table 2 focuses on the changes in net position of the governmental and business -type activities. (This space in intentionally left blank.) (See independent auditor's report) 19 32 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Table 2 Change in Net Position For the Year Ended on December 31, 2021 (in millions) Governmental Business -Type Activities Activities Totals 2021 2020 2021 2020 2021 2020 Revenues Program Revenues Charges for Services Operating Grants/Contributions Capital Grants/Contributions General Revenues Property Taxes Utility Taxes Business District Taxes Sales/Use Taxes Income Taxes Other Taxes Interest Other $ 12.3 10.8 17.8 3.1 3.0 2.8 1.3 20.5 20.0 3.1 3.0 0.3 0.3 38.3 29.5 7.2 5.9 5.0 3.4 (0.1) 0.3 - 1.8 2.1 16.8 30.1 27.7 3.1 3.0 2.8 1.3 20.5 20.0 3.1 3.0 0.3 0.3 38.3 29.5 7.2 5.9 5.0 3.4 0.2 (0.1) 0.4 1.8 2.1 94.3 79.6 17.8 17.0 112.1 96.6 Expenses General Government 5.9 7.8 5.9 7.8 Public Safety 34.7 40.6 34.7 40.6 Highways and Streets 14.0 12.8 14.0 12.8 Health 5.0 4.8 5.0 4.8 Welfare 2.0 1.9 2.0 1.9 Culture and Recreation 0.3 0.2 0.3 0.2 Interest on Long -Term Debt 3.8 4.3 3.8 4.3 Water and Sewer 15.6 18.0 15.6 18.0 Parking 0.2 0.2 0.2 0.2 65.7 72.4 15.8 18.2 81.5 90.6 Change in Net Position 28.6 7.2 2.0 (1.2) 30.6 6.0 Net Position - Beginning as Restated (58.3) (65.7) 43.4 39.1 (14.9) (26.6) Net Position - Ending (29.7) (58.5) 45.4 37.9 15.7 (20.6) (Note: There may be some slight differences in totals due to rounding.) (See independent auditor's report) 33 20 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Normal Impacts There are eight basic impacts on revenues and expenses and are reflected below. Revenues: Economic condition - This can reflect a declining, stable or growing economic environment and has a substantial impact on state income, sales and utility tax revenue as well as public spending habits for building permits, elective user fees and volumes of consumption. Increase/decrease in Village approved rates - While certain tax rates are set by statute, the Village Board has significant authority to impose and periodically increase/decrease rates (water, sewer, licenses and fees, home rule sales tax, utility taxes, etc.). Changing patterns in intergovernmental and grant revenue (both recurring and non-recurring) - Certain recurring revenues (state shared revenues, etc.) may experience significant changes periodically while non- recurring (or one-time) grants are less predictable and often distorting in their impact on year-to-year comparisons. Market impacts on investment income - The Village's investment portfolio is managed using a short-term average maturity and the market condition may cause investment income to fluctuate less than alternative longer-term options. Expenses: Introduction of new programs - Within the functional expense categories (Public Safety, Highways and Streets, General Government, etc.) individual programs may be added or deleted to meet changing community needs or unfunded mandates from other governmental levels. Increase/Decrease in authorized personnel - Changes in service demand may cause the Village Board to increase/decrease authorized staffing levels. Staffing costs (salary and related benefits) represent approximately 74.5% of the Village's General Fund operating costs. Salary increases (annual adjustments and merit) - The ability to attract and retain human and intellectual resources requires the Village to strive for a competitive salary range position in the marketplace. In addition, the Village has four separate bargaining units representing various segments of the employee population. Inflation - There is a rising rate environment and the inflation is at thirty-year high mark. The Village's budget and financial plan is flexible to accommodate any short-term impacts on inflation. The Village is a major consumer of certain commodities, supplies, fuels and parts and the cost of these commodities and supplies has increased due to high inflation. CURRENT YEAR IMPACTS Governmental Activities Revenue: Total revenues for the Village's Governmental Activities for 2021 were $94.3 million. The year 2021 was a challenging year due to the pandemic, but the Village revenues, especially intergovernmental revenues were stronger than usual. The Village collected an all time high state sales tax and income tax. The sales and use tax revenue totaled $38.3 million, an increase of $8.8 million compared to 2020 revenues totaling $29.5 million. The income tax collection totaled $7.2 million, an increase of $1.3 million compared to the 2020 collection of $5.9 million. Other taxes totaled $5.0 million for the year while the Village collected property taxes totaling $20.5 million. Overall, the Village recognized revenues totaling $94.3 million, an increase of $14.7 million compared to 2020 revenues totaling $79.6 million. (See independent auditor's report) 21 34 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Governmental Activities (cont.) Expenses: Total expenses for the Village's Governmental Activities for 2021 were $65.8 million. Public Safety, which includes Police and Fire, accounts for the largest portion of governmental expenses. Total Public Safety expenses in 2021 were $34.7 million, a decrease of $5.9 million from 2020. The decrease in the expenditures are mainly attributable to the personnel, pension costs and the construction of the new Police and Fire HQ related expenditures. Expenses for Highways and Streets, which are made up of the Public Works divisions (excluding water and sewer), is the second largest category of governmental expenses totaling $14.0 million. The General Government expenditures totaled $5.9 million, a decrease of $1.9 million from the prior year. This decrease of $1.9 million is mainly attributable to the decreased operating expenditures due to the cancellation of various Village Sponsored events due to COVID-19, ad overall reduction in the operating expenditure for the General Governmental operations. A few of the budgeted projects and line items were not completed due to the supply chain issues during the year 2021 and are expect to be completed in the year 2022. Business -Type Activities Revenues: Total revenues for the Village's Business -Type Activities for 2021 were $17.8 million. Business -type activities in the Village consist of Water and Sewer Operations and Parking Operations. Charges for service annually account for the largest share of revenue for business -type activities. Of the $17.8 million generated in 2021, $17.7 million is from water sales and sewer fees and charges, $0.1 million is from parking operations. The investments are marked to market and due to rising rate environment, the investment income is reporting a loss, which is an accounting adjustments. Upon maturity, the recognized unrealized loss will be reversed and the investment income will be recognized. The Village has intention and capacity to hold its investment through their maturities. Expenses: Total expenses for the Village's Business -Type Activities for 2021 were $15.8 million. Of the total expenses for business -type activities, $15.6 million is attributable to Water and Sewer while $0.2 million is attributable to parking operations. $7.5 million in Water and Sewer Fund expenses were for the acquisition of water through the Northwest Suburban Municipal Joint Action Water Agency (JAWA). FINANCIAL ANALYSIS OF THE VILLAGE'S GENERAL FUND The General Fund is the Village's primary operating fund. It supports a majority of the day-to-day services delivered to its residences and businesses. The fund balance of the General Fund saw an increase of $8.7 million in 2021 from $26.2 million to $34.8 million. In 2021, the General Fund revenues came in under the approved 2021 budget. The Village earned $69.1 in General Fund revenues against the approved budget of $71.1. The final Village budget had anticipated an increase in the General Fund's fund balance of $7.8 million; however, due to reduced operating expenditures and outperforming revenues, the increase in the fund balance was $8.7 million. Out of the total fund balance of $34.8 million, $3.7 million is considered assigned fund balance for TIF redevelopment projects per the approved redevelopment agreement. During the year 2021, the income tax revenue outperformed by $1.9 million, while the use tax outperformed by $0.4 million. The sales tax outperformed by $6.1 million compared to the original budget. The revised budget was adjusted to reflect the outperforming revenues. The largest revenue source for the General Fund for the fiscal year 2021 was the Intergovernmental revenues totaling $39.1 million, while the property taxes totaled $16.2 million. (See independent auditor's report) 22 35 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) The licenses and permit fees outperformed by $0.1 million and totaled $2.5 million. Charges for services also outperformed by $0.5 million, mainly due to additional ambulance billing fees revenue collected from the Ground Emergency Medical Transport program. The Village also collected $3.5 million in the American Rescue Plan. The amount is classified as deferred revenue for the year 2021 and will be recognized as revenue over the period of three years from 2022 to 2024. General Fund Budgeting Highlights During 2021, the Village amended the general fund budget three times. Table 3 below reflects the original and revised budget and the actual revenues and expenditures for the General Fund. Table 3 General Fund Budgetary Changes For the Fiscal Year Ended December 31, 2021 (in millions) Revenues and Other Financing Sources Taxes Intergovernmental Other Total Revenues and Other Financing Sources Expenditures and Other Financing Uses Expenditures Transfers Out Total Expenditures and Other Financing Uses Change in Fund Balance Other Major Funds Original Final Budget Budget Actual $ 23.4 23.4 23.6 30.3 41.7 39.1 5.2 6.0 6.4 58.9 71.1 69.1 57.8 59.3 56.4 3.0 4.0 4.0 60.8 63.3 60.4 (1.9) 7.8 8.7 (Note: There may be some slight differences in totals due to rounding.) There are three (3) other Major Funds for Fiscal Year ended December 31, 2021. These three Funds are 1) Prospect and Main TIF Fund, 2) Debt Service Fund, and 3) Police and Fire Building Construction. Prospect and Main TIF - This special revenue type TIF Fund is used to account for the resources to acquire property and construct certain improvements in the Prospect/Main Tax Incremental Financing District. Financing is being provided by incremental property taxes, general obligation bond proceeds, and investment income. Total revenues for 2021 were $1.5 million, while the total revenues for 2020 were $1.0 million. The total expenses for 2021 were $1.4 million, of which $0.2 million was used for capital outlay items. (See independent auditor's report) 23 36 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Other Major Funds - Continued Debt Service - This Fund is used to accumulate monies for the payment of principal and interest on general obligation bonds and other borrowings. Total revenues for 2021 were $5.3 million, an increase of $0.2 million from the prior year. Of this total revenue amount, $2.7 million was from property taxes, $1.6 million was from an intergovernmental transfer from the Mount Prospect Public Library to pay for library related debt, and $1.1 million was from other taxes. Total expenditures for 2021 were $6.7 million, an increase of $0.1 from the prior year. Ending fund balance decreased by $1.3 million to $1.8 million. Police and Fire Building Construction - This capital project type fund is used to account for the resources to construct the police and fire headquarters. Financing was provided primarily by general obligation bond proceeds. Total revenues for the year 2021 are $126. The total construction expenses for 2021 is $39,441. The ending fund balance is $4,819; it was transferred to the General Fund and the fund was be closed out during 2021. Capital Assets At the end of 2021, the Village had a combined total of $167.6 million invested in a broad range of capital assets including Village facilities, roads, bridges, water/sewer lines and machinery and equipment (see Table 4 below). Land Construction in Progress Buildings Improvements Other than Buildings Vehicles Machinery and Equipment Infrastructure Table 4 Capital Assets at Year End Net of Depreciation (in millions) Governmental Business -Type Activities Activities Totals 2021 2020 2021 2020 2021 2020 $ 15.6 15.6 17.3 17.3 32.9 32.9 9.6 24.9 2.0 2.5 11.6 27.4 64.7 42.3 1.3 1.4 66.0 43.7 1.0 1.1 1.0 1.1 4.6 5.3 4.6 5.3 3.5 3.7 1.2 1.3 4.7 5.0 20.3 18.2 26.5 22.8 46.8 41.0 119.3 111.1 48.3 45.3 167.6 156.4 (Note: There may be some slight differences in totals due to rounding.) This amount represents a net increase (including additions and deletions) of $11.4 million from 2020. The following reconciliation in Table 5 summarizes the changes in Capital Assets. (This space in intentionally left blank.) (See independent auditor's report) 24 37 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Table 5 Change in Capital Assets (in millions) Governmental Business -Type Activities Activities Totals Beginning Balance as Restated $ 111.1 45.3 156.4 Additions Depreciable 4.3 1.9 6.2 Nondepreciable 8.9 2.0 10.9 Retirements Depreciable (0.8) (0.6) (1.4) Depreciation (4.8) (0.8) (5.6) Retirement 0.7 0.6 1.3 Ending Balance 119.4 48.4 167.8 (Note: There may be some slight differences in totals due to rounding.) Table 5 above shows the change in capital assets during 2021. This year's major additions to the capital assets include the following (in millions): Governmental Activities Various construction projects in -progress - $8.9 Buildings - $0.04 Vehicles for Public Safety, Public Works and Village Fleet - $0.1 Purchases of various machinery & equipment - $0.2 Infrastructure Improvements - $3.9 Business -Type Activities Various construction projects in -progress - $2.0 Infrastructure Improvements - $1.9 More detailed information on capital asset activity can be found in Note 3 of the notes to the financial statements. (See independent auditor's report) 25 38 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Debt Outstanding The Village of Mount Prospect had total long-term debt and loans payable of $238.8 million as of December 31, 2021. Long-term debt is comprised of general obligation debt, compensated absences to employees, other post - employment benefits (OPEB), loans payable, claims and judgements, and pension liability for IMRF, Police and Fire. Pension liability for police and fire increased by $15.2 million. The net pension liability/(asset) of IMRF decreased by $8.1 million. The compensated absences had a net decrease of $0.1 million, while the total OPEB (Other Post Employment Benefit) liability decreased by $0.4 million. Decreases in long term debt include the retirement of $5.1 million in general obligation debt. The Village of Mount Prospect maintains an AA+ rating from Standard and Poor's. As a home rule authority, the Village of Mount Prospect does not have a legal debt limit. More detailed information on long-term debt activity can be found in Note 3 of the notes to the financial statements. Economic Factors and Next Year's Budget The General Fund, the Village's main operating fund, holds a strong cash and fund balance position as of December 31, 2021, The Village has pledged $3.7 million from the unassigned fund balance for a TIF redevelopment project. To reflect the pledged fund balance for the project, $3.7 million is classified as an assigned fund balance. The unassigned fund balance as of December 31, 2021 is $30.8 million. The amount of fund balance as of December 31, 2021 represents 44.0 percent of the 2022 General Fund Budget. In spite of COVID-19, the Village did not experience a shortfall in the total General Fund revenues, instead some of the revenue sources including the state sales tax, home rule sales tax and income tax revenues recorded an all-time high revenue amounts. The Village Board has set as its benchmark a level of reserves equal to 25% of subsequent year expenditures. The Village has recovered gracefully from the pandemic and a return to normalcy is expected in 2022. Total Village revenues for 2021 continued to see positive increases from the prior year. Conservative approaches to estimating revenue and strong expenditure management by the various departments have allowed the Village to maintain a strong financial condition through several lean years following the significant downturn in the economy that started at the end of 2008/2009. Continuing challenges in 2022 and years to come include reductions in revenue due to state budgetary issues, rising personnel related costs (wages, insurance, etc.) and the funding of the public safety pensions. Approximately 74% of the operating budget is made up of these personnel and related costs. On a positive note, the Village's population is on rise. Per the release 2020 Census data, the Village gained 2,685 more residents and now the population totals at 56,852. The added population is expected to bring additional per capita taxes (use tax, income tax and motor fuel tax) from the State of Illinois. The Village's average unemployment for 2021 was 2.9 percent. This is below the state and national unemployment rates of 5.1 percent and 3.9 percent, respectively. The Village is mainly divided between Elk Grove Township and Wheeling Township, and a small portion of the Village is within Maine Township. The year 2019 was a year of the triennial assessment. The Elk Grove Township increased the assessed value of all the properties on an average by 53 percent, while the Wheeling Township increased the average assessed value by 31.0 percent. After the triennial assessment, the total equalized assessed value for the Village is $1.97 billion, an 18.0 percent increase from the prior year. The 2022 (amended) Budget represents a 16.7 percent increase from the amended 2021 Budget and totals $160.5 million. The increase in the budget is attributable to certain grant funded capital projects as well as carried over capital projects from the year 2021 (due to supply chain issues). The General Fund increased $7.5 million, or 12.1% from the prior year due to projects funded from the American Rescue Plan as well as hiring of six additional fire fighters, which will allow the Village to improve its response time in southern Mount Prospect. Of the total budget of $160.5 million, the operating budget totals $79.2 million and Community Investment Program (capital improvement plan) totals $50.6 million. (See independent auditor's report) 26 39 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) During May 2021, the Village received $3.5 million as the first installment of the American Rescue Plan. The amount is classified as deferred revenue for the year 2021. The amount is expected to fund various important and (eligible) projects and programs for the Village. The Village will be receiving the second and final installment in June 2022 for an equal amount. The American Rescue Plan provides financial support to the local government in responding to the COVID-19 pandemic and allows spending on certain qualified items as defined by the U.S. Treasury in the interim final rule. The Village's financial health and cash position is strong. The Village does not anticipate any short-term concerns and Village Administration is vigilant and committed to maintaining the long- term fiscal health of the Village. Request for Information This financial report is designed to provide a general overview of the Village of Mount Prospect's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to Amit Thakkar, Director of Finance/ Treasurer, Village of Mount Prospect, 50 South Emerson, Mount Prospect, Illinois 60056. (See independent auditor's report) 27 40 BASIC FINANCIAL STATEMENTS The basic financial Statements include integrated sets of financial statements as required by the GASB. The sets of statements include: • Government -Wide Financial Statements • Fund Financial Statements Governmental Funds Proprietary Funds Fiduciary Funds In addition, the notes to the financial statements are included to provide information that is essential to a user's understanding of the basic financial statements. 28 41 VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Net Position December 31, 2021 See Following Page 29 42 VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Net Position December 31, 2021 ASSETS Current Assets Cash and Cash Equivalents Receivables - Net of Allowances Due from Other Governments Deposits - Insurance Prepaids/Inventories Total Current Assets Noncurrent Assets Capital Assets Nondepreciable Depreciable Accumulated Depreciation Total Capital Assets Other Assets Deposits - Insurance Equity Interest in Joint Venture Net Pension Asset - IMRF Total Other Assets Total Noncurrent Assets Total Assets DEFERRED OUTFLOWS OF RESOURCES Deferred Items - IMRF Deferred Items - Police Pension Deferred Items - Firefighters' Pension Deferred Items - RBP Unamortized Asset Retirement Obligation Loss on Refunding Total Deferred Outflows of Resources Total Assets and Deferred Outflows of Resources Primary Government Governmental Business -Type Activities Activities Totals $ 59,819,970 16,639,075 76,459,045 31,658,301 1,894,635 33,552,936 3,487,339 387 3,487,726 3,579,477 — 3,579,477 866,405 291,664 1,158,069 99,411,492 18,825,761 118,237,253 25,245,308 19,344,715 44,590,023 197,955,551 52,180,097 250,135,648 (103,858,838) (23,202,903) (127,061,741) 119,342,021 48,321,909 167,663,930 1,249,584 — 1,249,584 — 464,034 464,034 2,678,315 527,637 3,205,952 3,927,899 991,671 4,919,570 123,269,920 49,313,580 172,583,500 222,681,412 68,139,341 290,820,753 2,453,584 483,363 2,936,947 11,605,208 — 11,605,208 9,102,003 — 9,102,003 3,101,812 284,803 3,386,615 — 727,500 727,500 236,079 — 236,079 26,498,686 1,495,666 27,994,352 249,180,098 69,635,007 318,815,105 The notes to the financial statements are an integral part of this statement. 43 30 LIABILITIES Current Liabilities Accounts Payable Accrued Payroll Retainage Payable Due to Other Governments Accrued Interest Payable Other Payables Current Portion of Long -Term Liabilities Compensated Absences Payable Claims Payable General Obligation Bonds Payable - Net Business District Limited Tax Note Payable Total Current Liabilities Noncurrent Liabilities Compensated Absences Payable Claims Payable Net Pension Liability - Police Pension Net Pension Liability - Firefighters' Pension Total OPEB Liability - RBP Asset Retirement Obligation General Obligation Bonds Payable - Net Business District Limited Tax Note Payable Total Noncurrent Liabilities Total Liabilities DEFERRED INFLOWS OF RESOURCES Property Taxes Grants Deferred Items - IMRF Deferred Items - Police Pension Deferred Items - Firefighters' Pension Deferred Items - RBP Total Deferred Inflows of Resources Total Liabilities and Deferred Inflows of Resources NET POSITION Net Investment in Capital Assets Restricted Public Safety - Police Public Safety - Fire Highways and Streets Debt Service Unrestricted (Deficit) Total Net Position Primary Government Governmental Activities Business -Type Activities Totals $ 1,565,973 1,225,332 2,791,305 1,424,537 93,467 1,518,004 10,650 175,407 186,057 427,066 — 427,066 248,706 53,194 301,900 1,747,937 10,754 1,758,691 946,087 58,271 1,004,358 281,227 — 281,227 4,505,000 575,000 5,080,000 958,001 — 958,001 12,115,184 2,191,425 14,306,609 3,181,599 233,084 3,414,683 268,282 — 268,282 45,236,365 — 45,236,365 40,010,412 — 40,010,412 13,202,443 1,212,224 14,414, 667 — 750,000 750,000 76,778,168 18,069,921 94,848,089 35,772,521 — 35,772,521 214,449,790 20,265,229 234,715,019 226,564,974 22,456,654 249,021,628 18,985,049 — 18,985,049 3,513,935 — 3,513,935 7,074,264 1,393,652 8,467,916 11,258,083 — 11,258,083 8,044,131 — 8,044,131 3,559,835 326,857 3,886,692 52,435,297 1,720,509 54,155,806 279,000,271 24,177,163 303,177,434 38,294,932 29,676,988 67,971,920 312,054 — 312,054 477,734 — 477,734 4,876,061 — 4,876,061 1,533,779 — 1,533,779 (75,314,733) 15,780,856 (59,533,877) (29,820,173) 45,457,844 15,637,671 The notes to the financial statements are an integral part of this statement. 44 31 VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Activities For the Fiscal Year Ended December 31, 2021 Program Revenues Charges Operating Capital for Grants/ Grants/ Expenses Services Contributions Contributions Governmental Activities General Government $ 5,947,477 7,449,945 Public Safety 34,743,839 3,258,363 270,721 — Highways and Streets 14,011,139 1,618,479 2,122,371 2,848,071 Health 4,962,123 Welfare 1,969,068 — 661,380 — Culture and Recreation 294,457 — — — Interest on Long -Term Debt 3,826,832 — 61,750 — Total Governmental Activities 65,754,935 12,326,787 3,116,222 2,848,071 Business -Type Activities Water and Sewer 15,584,057 17,735,543 Parking 176,825 56,289 Total Business -Type Activities 15,760,882 17,791,832 Total Primary Government 81,515,817 30,118,619 3,116,222 2,848,071 General Revenues Taxes Property Utility Business District Home Rule Sales Food and Beverage Real Estate Transfer Municipal Motor Fuel Hotel/Motel Other Taxes Intergovernmental - Unrestricted Income Taxes State Sales and Local Use Tax Replacement Taxes Charitable Games Tax Interest Miscellaneous Total General Revenues Change in Net Position Net Position - Beginning as Restated Net Position - Ending The notes to the financial statements are an integral part of this statement. 45 32 Net (Expenses)/Revenues Governmental Business -Type Activities Activities Totals 1,502,468 — 1,502,468 (31,214,755) — (31,214,755) (7,422,218) — (7,422,218) (4,962,123) — (4,962,123) (1,307,688) — (1,307,688) (294,457) — (294,457) (3,765,082) — (3,765,082) (47,463,855) — (47,463,855) 2,151,486 2,151,486 (120,536) (120,536) 2,030,950 2,030,950 (47,463,855) 2,030,950 (45,432,905) 20,516,214 — 20,516,214 3,053,871 — 3,053,871 290,877 — 290,877 6,689,468 — 6,689,468 1,412,584 — 1,412,584 1,471,917 — 1,471,917 696,357 — 696,357 326,276 — 326,276 323,597 — 323,597 7,175,489 — 7,175,489 31,590,604 — 31,590,604 723,067 — 723,067 1,315 — 1,315 (82,122) (19,053) (101,175) 1,794,339 32,814 1,827,153 75,983,853 13,761 75,997,614 28,519,998 2,044,711 30,564,709 (58,340,171) 43,413,133 (14,927,038) (29,820,173) 45,457,844 15,637,671 The notes to the financial statements are an integral part of this statement. 46 33 VILLAGE OF MOUNT PROSPECT, ILLINOIS Balance Sheet - Governmental Funds December 31, 2020 ASSETS Cash and Investments Receivables - Net of Allowances Property Taxes Other Taxes Other Accounts Due from Other Governments Due from Other Funds Inventories Prepaids Total Assets LIABILITIES Accounts Payable Accrued Payroll Retainage Payable Due to Other Governments Due to Other Funds Other Payables Total Liabilities General $ 29,375,181 16,259,186 9,859,038 312,830 92,748 1,801,494 1,922 340,450 58,042,849 773,678 1,376,209 264,460 39,091 1,123,800 3,577,238 DEFERRED INFLOWS OF RESOURCES Property Taxes 16,156,364 Unavailable Revenues — Grants 3,513,935 Total Deferred Inflows of Resources 19,670,299 Total Liabilities and Deferred Inflows of Resources 23,247,537 FUND BALANCES Nonspendable 342,372 Restricted — Committed — Assigned 3,700,000 Unassigned 30,752,940 Total Fund Balances 34,795,312 Total Liabilities, Deferred Inflows of Resources and Fund Balances 58,042,849 The notes to the financial statements are an integral part of this statement. 47 34 Prospect Police and Fire and Main Debt Building TIF District Service Construction Nonmajor Totals 341,682 1,767,712 — 14,326,466 45,811,041 60,969 2,828,685 — — 19,148,840 1,624,537 11,483,575 677,116 989,946 492 492 — 1,564,773 — 1,820,325 3,477,846 1,470,550 1,801,494 6,870 4,001,255 1,922 79,781 420,231 402,651 6,161,170 — 18,528,717 83,135,387 6,870 544,281 1,324,829 12,193 1,388,402 10,650 10,650 162,087 426,547 1,801,494 1,840,585 1,470,550 2,594,350 6,870 4,001,255 7,585,363 — 2,828,685 — — 18,985,049 — 1,550,000 — — 1,550,000 1,012,349 3,513,935 — 4,378,685 — — 24,048,984 6,870 4,378,685 — 4,001,255 31,634,347 79,781 422,153 395,781 1,782,485 — 5,270,068 7,448,334 1,012,349 1,012,349 8,157,144 11,857,144 8,120 30,761,060 395,781 1,782,485 — 14,527,462 51,501,040 402,651 6,161,170 — 18,528,717 83,135,387 The notes to the financial statements are an integral part of this statement. 48 35 VILLAGE OF MOUNT PROSPECT, ILLINOIS Reconciliation of the Total Governmental Fund Balance to the Statement of Net Position - Governmental Activities December 31, 2020 Total Governmental Fund Balances $ 51,501,040 Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not financial resources and therefore, are not reported in the funds. 119,342,021 Less: Internal Service Capital Assets (7,885,234) A net pension asset is not considered to represent a financial resource and therefore is not reported in the funds. Net Pension Asset - IMRF 2,678,315 Deferred outflows (inflows) of resources related to the pensions not reported in the funds. Deferred Items - IMRF (4,620,680) Deferred Items - Police Pension 347,125 Deferred Items - Firefighters' Pension 1,057,872 Deferred Items - RBP (441,569) Certain revenues that are deferred in the governmental funds are recognized as revenue in the governmental activities 1,550,000 Internal Service Funds are used by the Village to charge the costs of vehicle and equipment management and employee compensated absences to individual funds. The assets and liabilities of the internal service funds are included in the governmental activities in the Statement of Net Position. 25,752,604 Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds. Compensated Absences Payable (4,058,398) Net Pension Liability - Police Pension (45,236,365) Net Pension Liability - Firefighters' Pension (40,010,412) Total OPEB Liability - RBP (12,728,176) General Obligation Bonds Payable - Net (81,283,168) Unamortized Loss on Refunding 236,079 Business District Limited Tax Note Payable (36,730,522) Plus: Amounts Recorded in the Governmental Funds Balance Sheet 958,001 Accrued Interest Payable (248,706) Net Position of Governmental Activities (29,820,173) The notes to the financial statements are an integral part of this statement. 49 36 VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds For the Fiscal Year Ended December 31, 2021 See Following Page 37 50 VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds For the Fiscal Year Ended December 31, 2021 Revenues Taxes Intergovernmental Licenses and Permits Charges for Services Fines and Forfeitures Interest Miscellaneous Total Revenues Expenditures Current General Government Public Safety Highways and Streets Health Welfare Culture and Recreation Capital Outlay Debt Service Principal Retirement Interest and Fiscal Charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Disposal of Capital Assets Transfers In Transfers Out Net Change in Fund Balances Fund Balances - Beginning Fund Balances - Ending The notes to the financial statements are an integral part of this statement. 38 Gen PYA l 23,607,673 39,100,373 2,462,218 3,153,582 445,604 (3,025) ?9( ?(6 69,062,691 6,441,083 38,734,462 9,370,338 166,502 1,422,835 306,890 56,442,110 12,620,581 360 (4,000,000) (3,999,640) 8,620,941 26,174,3 71 34,795,312 51 Prospect Police and Fire and Main Debt Building TIF District Service Construction Nonmajor Totals 1,483,537 3,767,323 — 5,922,628 34,781,161 — 1,576,750 — 6,292,645 46,969,768 4,818,826 1,451,051 3,913,269 2,126,344 4,814,332 7,967,914 224,812 — 39,441 10,837,406 11,101,659 445,604 131 835 126 2,919 986 1,502,436 1,798,702 1,483,668 5,344,908 126 19,986,011 95,877,404 165,043 1,473,245 8,079,371 57,315 38,791,777 2,636,234 12,006,572 4,818,826 4,985,328 703,509 2,126,344 306,890 224,812 — 39,441 10,837,406 11,101,659 320,000 4,270,000 4,590,000 699,188 2,424,107 3,123,295 1,409,043 6,694,107 39,441 20,526,535 85,111,236 74,625 (1,349,199) (39,315) (540,524) 10,766,168 295,165 295,525 — 4,819 — 4,540,000 4,544,819 (4,819) (540,000) (4,544,819) 295,165 4,819 (4,819) 4,000,000 295,525 369,790 (1,344,380) (44,134) 3,459,476 11,061,693 25,991 3,126,865 44,134 11,067,986 40,439,347 395,781 1,782,485 — 14,527,462 51,501,040 The notes to the financial statements are an integral part of this statement. 52 39 VILLAGE OF MOUNT PROSPECT, ILLINOIS Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of the Governmental Funds to the Statement of Activities - Governmental Activities For the Fiscal Year Ended December 31, 2021 Net Change in Fund Balances - Total Governmental Funds $ 11,061,693 Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Capital Outlays 13,181,171 Depreciation Expense (4,782,107) Disposals - Cost (775,046) Disposals - Accumulated Depreciation 724,829 Less: Internal Service Funds (647,761) Changes in certain revenues recognized as revenue only in the governmental activities. (1,515,000) The net effect of deferred outflows (inflows) of resources related to the pensions not reported in the funds. Change in Deferred Items - IMRF (5,212,621) Change in Deferred Items - Police Pension 10,377,896 Change in Deferred Items - Firefighters' Pension 9,079,162 Change in Deferred Items - RBP (1,001,724) The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal on long-term debt consumes the current financial resources of the governmental funds. Change in Compensated Absences Payable 61,795 Change in Net Pension Liability/(Asset) - IMRF 6,818,864 Change in Net Pension Liability - Police Pension (7,748,730) Change in Net Pension Liability - Firefighters' Pension (7,460,727) Change in Total OPEB Liability - RBP 338,111 Retirement of Debt 4,590,000 Amortization of Bond Premium 273,802 Amortization of Loss of Refunding (70,034) Accreted Interest on Business District Limited Tax Note Payable (918,599) Change in Accrued Interest Payable 11,294 Internal service funds are used by the Village to charge the costs of vehicle and equipment management and employee compensated absences to individual funds. The net revenue of certain activities of internal service funds is reported with governmental activities. 2,133,730 Changes in Net Position of Governmental Activities 28,519,998 The notes to the financial statements are an integral part of this statement. 53 40 VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Net Position - Proprietary Funds December 31, 2021 See Following Page 41 54 VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Net Position - Proprietary Funds December 31, 2021 Governmental Business -Type Activities - Enterprise Activities Water and Internal Sewer Nonmajor Totals Service ASSETS Current Assets 19,344,715 - 19,344,715 1,760,969 Cash and Investments $ 16,311,963 327,112 16,639,075 14,008,929 Receivables - Net of Allowances (22,838,103) (364,800) (23,202,903) (9,707,041) Accounts - Billed 864,501 - 864,501 - Accounts - Unbilled 1,028,854 - 1,028,854 - Accrued Interest 11,401 Other 1,231 49 1,280 24,047 Due from Other Governments 387 - 387 9,493 Deposits - Insurance 991,671 - 991,671 3,579,477 Inventories 248,058 - 248,058 355,169 Prepaids 43,606 - 43,606 89,083 Total Current Assets 18,498,600 327,161 18,825,761 18,077,599 Noncurrent Assets Capital Assets Nondepreciable 19,344,715 - 19,344,715 1,760,969 Depreciable 51,815,297 364,800 52,180,097 15,831,306 Accumulated Depreciation (22,838,103) (364,800) (23,202,903) (9,707,041) Total Capital Assets 48,321,909 - 48,321,909 7,885,234 Other Assets Deposits - Insurance 1,249,584 Equity Interest in Joint Venture 464,034 - 464,034 - Net Pension Asset - IMRF 527,637 - 527,637 - Total Other Assets 991,671 - 991,671 1,249,584 Total Noncurrent Assets 49,313,580 - 49,313,580 9,134,818 Total Assets 67,812,180 327,161 68,139,341 27,212,417 DEFERRED OUTFLOWS OF RESOURCES Deferred Items - IMRF 483,363 - 483,363 - Deferred Items - RBP 284,803 - 284,803 111,425 Unamortized Asset Retirement Obligation 727,500 - 727,500 - Total Deferred Outflows of Resources 1,495,666 - 1,495,666 111,425 Total Assets and Deferred Outflows of Resources 69,307,846 327,161 69,635,007 27,323,842 The notes to the financial statements are an integral part of this statement. 55 42 Governmental Business -Type Activities - Enterprise Activities Water and Internal Sewer Nonmajor Totals Service LIABILITIES Compensated Absences Payable Current Liabilities 3,576 233,084 55,430 Claims Payable Accounts Payable $ 1,215,583 9,749 1,225,332 202,053 Accrued Payroll 91,931 1,536 93,467 36,135 Retainage Payable 175,407 - 175,407 - Due to Other Governments - 18,069,921 - Total Noncurrent Liabilities 519 Claims Payable - 281,227 Accrued Interest Payable 53,194 - 53,194 - Other Payables 9,894 860 10,754 111,588 Compensated Absences Payable 57,377 894 58,271 13,858 General Obligation Bonds Payable 575,000 - 575,000 - Total Current Liabilities 2,178,386 13,039 2,191,425 645,380 Noncurrent Liabilities Compensated Absences Payable 229,508 3,576 233,084 55,430 Claims Payable 268,282 Net Pension Liability - IMRF Total OPEB Liability - RBP 1,212,224 - 1,212,224 474,267 Asset Retirement Obligation 750,000 - 750,000 - General Obligation Bonds Payable 18,069,921 - 18,069,921 - Total Noncurrent Liabilities 20,261,653 3,576 20,265,229 797,979 Total Liabilities 22,440,039 16,615 22,456,654 1,443,359 DEFERRED INFLOWS OF RESOURCES Deferred Items - IMRF 1,393,652 - 1,393,652 - Deferred Items - RBP 326,857 - 326,857 127,879 Total Deferred Inflows of Resources 1,720,509 - 1,720,509 127,879 Total Liabilities and Deferred Inflows of Resources 24,160,548 16,615 24,177,163 1,571,238 NET POSITION Net Investment in Capital Assets 29,676,988 - 29,676,988 7,885,234 Unrestricted 15,470,310 310,546 15,780,856 17,867,370 Total Net Position 45,147,298 310,546 45,457,844 25,752,604 The notes to the financial statements are an integral part of this statement. 56 43 VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds For the Fiscal Year Ended December 31, 2021 Operating Revenues Charges for Services Contributions Miscellaneous Total Operating Revenues Operating Expenses Administration Insurance and Claims Depreciation and Amortization Total Operating Expenses Operating Income (Loss) Nonoperating Revenues (Expenses) Disposal of Capital Assets Interest Income Other Income Property Taxes Interest Expense Change in Net Position Net Position - Beginning as Restated Net Position - Ending Governmental Business -Type Activities - Enterprise Activities Water and Internal Sewer Nonmajor Totals Service $ 17,735,543 56,289 17,791,832 12,363,338 1,724,782 1,000,558 17,735,543 56,289 17,791,832 15,088,678 14,079,695 176,825 14,256,520 2,531,158 9,245,384 811,517 — 811,517 1,122,375 14,891,212 176,825 15,068,037 12,898,917 (19,159) 106 (19,053) (83,108) 2,844,331 (120,536) 2,723,795 2,189,761 (14,555) — (14,555) 27,077 (19,159) 106 (19,053) (83,108) 47,230 139 47,369 — (31,127) — (31,127) — (661,718) — (661,718) — (679,329) 245 (679,084) (56,031) 2,165,002 (120,291) 2,044,711 2,133,730 42,982,296 430,837 43,413,133 23,618,874 45,147,298 310,546 45,457,844 25,752,604 The notes to the financial statements are an integral part of this statement. 57 44 VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Cash Flows - Proprietary Funds For the Fiscal Year Ended December 31, 2021 Governmental Cash Flows from Noncapital Financing Activities Property Taxes (31,127) — (31,127) — Cash Flows from Capital and Related Financing Activities Disposal of Capital Assets Purchase of Capital Assets Principal Paid on Debt Interest Paid on Debt Cash Flows from Investing Activities Interest Received Net Change in Cash and Cash Equivalents Cash and Cash Equivalents - Beginning Cash and Cash Equivalents - Ending Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities Operating Income (Loss) Adjustments to Reconcile Operating Income Income to Net Cash Provided by (Used in) Operating Activities: Depreciation and Amortization Other Income (Expense) (Increase) Decrease in Current Assets Increase (Decrease) in Current Liabilities Net Cash Provided by Operating Activities Business -Type Activities - Enterprise Activities (525,000) Water and (661,718) — (661,718) — Internal — (5,091,036) (1,743,059) Sewer Nonmajor Totals Service Cash Flows from Operating Activities Receipts from Customers and Users $ 17,581,312 56,257 17,637,569 3,766,899 Interfund Services Provided — 10,403,013 Payments to Suppliers (11,453,754) (139,839) (11,593,593) (11,156,489) Payments to Employees (2,305,450) (36,050) (2,341,500) (961,519) 3,822,108 (119,632) 3,702,476 2,051,904 Cash Flows from Noncapital Financing Activities Property Taxes (31,127) — (31,127) — Cash Flows from Capital and Related Financing Activities Disposal of Capital Assets Purchase of Capital Assets Principal Paid on Debt Interest Paid on Debt Cash Flows from Investing Activities Interest Received Net Change in Cash and Cash Equivalents Cash and Cash Equivalents - Beginning Cash and Cash Equivalents - Ending Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities Operating Income (Loss) Adjustments to Reconcile Operating Income Income to Net Cash Provided by (Used in) Operating Activities: Depreciation and Amortization Other Income (Expense) (Increase) Decrease in Current Assets Increase (Decrease) in Current Liabilities Net Cash Provided by Operating Activities (19,159) 106 (19,053) (83,108) (1,319,214) (119,526) (1,438,740) 225,737 17,631,177 446,638 18,077,815 13,783,192 16,311,963 327,112 16,639,075 14,008,929 2,844,331 (120,536) 2,723,795 2,189,761 811,517 72,931 (3,904,318) — (3,904,318) (1,815,990) (525,000) — (525,000) — (661,718) — (661,718) — (5,091,036) — (5,091,036) (1,743,059) (19,159) 106 (19,053) (83,108) (1,319,214) (119,526) (1,438,740) 225,737 17,631,177 446,638 18,077,815 13,783,192 16,311,963 327,112 16,639,075 14,008,929 2,844,331 (120,536) 2,723,795 2,189,761 811,517 — 811,517 1,122,375 47,230 139 47,369 — (154,231) (32) (154,263) (918,766) 273,261 797 274,058 (341,466) 3,822,108 (119,632) 3,702,476 2,051,904 The notes to the financial statements are an integral part of this statement. 58 45 VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Fiduciary Net Position December 31, 2021 ASSETS Cash and Cash Equivalents Investments U.S. Government Obligations U.S. Agency Obligations State and Local Obligations Corporate Bonds Real Estate Mutual Funds Receivables Accrued Interest Due from Other Funds Prepaids Total Assets LIABILITIES Accounts Payable NET POSITION Net Position Restricted for Pensions Pension $ 8,086,082 11,956,722 25,620,841 5,303,797 16,555,841 7,920,247 105,857,021 257,304 39,091 3,129 181,600,075 108,515 181,491,560 The notes to the financial statements are an integral part of this statement. 59 46 VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Changes in Fiduciary Net Position For the Fiscal Year Ended December 31, 2021 Total Additions 27,600,857 Deductions Administration 169,903 Benefits and Refunds 13,307,094 Total Deductions 13,476,997 Change in Fiduciary Net Position 14,123,860 Net Position Restricted for Pensions Beginning 167,367,700 Ending 181,491,560 The notes to the financial statements are an integral part of this statement. 60 47 Pension Trust Additions Contributions - Employer S 7,628,966 Contributions - Plan Members 1,669,464 Total Contributions 9,298,430 Investment Income Interest Earned 949 Net Change in Fair Value 18,556,713 18,557,662 Less Investment Expenses (255,235) Net Investment Income 18,302,427 Total Additions 27,600,857 Deductions Administration 169,903 Benefits and Refunds 13,307,094 Total Deductions 13,476,997 Change in Fiduciary Net Position 14,123,860 Net Position Restricted for Pensions Beginning 167,367,700 Ending 181,491,560 The notes to the financial statements are an integral part of this statement. 60 47 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Village of Mount Prospect (Village), Illinois, was incorporated in 1917. The Village operates under the Council/Manager form of government. The appointed manager administers daily operations with the community while the elected Village Mayor and six -member Board of Trustees determine Village policy. The Village's major operations include public works, finance, police, fire, community development, human services and communications. The government -wide financial statements are prepared in accordance with generally accepted accounting principles (GAAP). The Governmental Accounting Standards Board (GASB) is responsible for establishing GAAP for state and local governments through its pronouncements (Statements and Interpretations). The more significant of the Village's accounting policies established in GAAP and used by the Village are described below. REPORTING ENTITY The Village's financial reporting entity comprises the following: Primary Government: Village of Mount Prospect In determining the financial reporting entity, the Village complies with the provisions of GASB Statement No. 61, "The Financial Reporting Omnibus - an Amendment of GASB Statements No. 14 and No. 34," and includes all component units that have a significant operational or financial relationship with the Village. Based upon the criteria set forth in the GASB Statement No. 61, there are no component units included in the reporting entity. Police Pension Employees Retirement System The Village's sworn police employees participate in the Police Pension Employees Retirement System (PPERS). PPERS functions for the benefit of these employees and is governed by a five -member pension board. Two members appointed by the Village's Mayor, one elected pension beneficiary and two elected police employees constitute the pension board. The participants are required to contribute a percentage of salary as established by state statute and the Village is obligated to fund all remaining PPERS costs based upon actuarial valuations. The State of Illinois is authorized to establish benefit levels and the Village is authorized to approve the actuarial assumptions used in the determination of contribution levels. Although it is legally separate from the Village, the PPERS is reported as if it were part of the primary government because its sole purpose is to provide retirement benefits for the Village's police employees. The PPERS is reported as a fiduciary fund, and specifically a pension trust fund, due to the fiduciary responsibility exercised over the PPERS. Firefighters' Pension Employees Retirement System The Village's sworn firefighters participate in the Firefighters' Pension Employees Retirement System (FPERS). FPERS functions for the benefit of these employees and is governed by a five -member pension board, with two members appointed by the Village's Mayor, two elected from active participants of the Fund, and one elected pension beneficiary of the Fund. The participants are required to contribute a percentage of salary as established by state statute and the Village is obligated to fund all remaining FPERS costs based upon actuarial valuations. The State of Illinois is authorized to establish benefit levels and the Village is authorized to approve the actuarial assumptions used in the determination of contribution levels. Although it is legally separate from the Village, the FPERS is reported as if it were part of the primary government because its sole purpose is to provide retirement benefits for the Village's sworn firefighters. The FPERS is reported as a fiduciary fund, and specifically a pension trust fund, due to the fiduciary responsibility exercised over the FPERS. 48 61 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued BASIS OF PRESENTATION Government -Wide Statements The Village's basic financial statements include both government -wide (reporting the Village as a whole) and fund financial statements (reporting the Village's major funds). Both the government -wide and fund financial statements categorize primary activities as either governmental or business -type. The Village's police and fire safety, highways and street maintenance and reconstruction, building code enforcement, public improvements, economic development, planning and zoning, and general administrative services are classified as governmental activities. The Village's waterworks and sewerage, and commuter parking activities are classified as business - type activities. In the government -wide Statement of Net Position, both the governmental and business -type activities columns are: (a) presented on a consolidated basis by column, and (b) reported on a full accrual, economic resource basis, which recognizes all long-term assets/deferred outflows and receivables as well as long-term debt/deferred inflows and obligations. The Village's net position is reported in three parts: net investment in capital assets; restricted; and unrestricted. The Village utilizes restricted resources to finance qualifying activities. The government -wide Statement of Activities reports both the gross and net cost of each of the Village's functions and business -type activities (administration and finance, public safety, public works, development services, etc.). The functions are supported by administration and finance revenues (property, sales and use taxes, certain intergovernmental revenues, fines, permits and charges, etc.). The Statement of Activities reduces gross expenses (including depreciation) by related program revenues, which include 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. The net costs (by function or business -type activity) are normally covered by general revenue (property taxes, intergovernmental revenues, fines, permits and charges, etc.). This government -wide focus is more on the sustainability of the Village as an entity and the change in the Village's net position resulting from the current year's activities. Fund Financial Statements The financial transactions of the Village are reported in individual funds in the fund financial statements. Each fund is accounted for by providing a separate set of self -balancing accounts that comprise its assets/deferred outflows, liabilities/deferred inflows, fund equity, revenues and expenditures/expenses. Funds are organized into three major categories: governmental, proprietary, and fiduciary. The emphasis in fund financial statements is on the major funds in either the governmental or business -type activities categories. 49 62 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued BASIS OF PRESENTATION - Continued Fund Financial Statements - Continued GASB Statement No. 34 sets forth minimum criteria (percentage of the assets/deferred outflows, liabilities/ deferred inflows, revenues or expenditures/expenses of either fund category or the governmental and enterprise combined) for the determination of major funds. The Village electively added funds, as major funds, which either had debt outstanding or specific community focus. The nonmajor funds are combined in a column in the fund financial statements. A fund is considered major if it is a primary operating fund of the Village or meets the following criteria: Total assets/deferred outflows, liabilities/deferred inflows, revenues, or expenditures/expenses of that individual governmental or enterprise fund are at least 10 percent of the corresponding total for all funds of that category or type; and Total assets/deferred outflows, liabilities/deferred inflows, revenues, or expenditures/expenses of the individual governmental or enterprise fund are at least 5 percent of the corresponding total for all governmental and enterprise funds combined. The various funds are reported by generic classification within the financial statements. The following fund types are used by the Village: Governmental Funds The focus of the governmental funds' measurement (in the fund statements) is upon determination of financial position and changes in financial position (sources, uses, and balances of financial resources) rather than upon net income. The following is a description of the governmental funds of the Village: General Fund is the general operating fund of the Village. It accounts for all revenues and expenditures of the Village which are not accounted for in other funds. The General Fund is a major fund. Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. The Village maintains one major special revenue fund, the Prospect and Main TIF Fund, which is used to account for the resources to acquire property and construct certain improvements in the Prospect and Main Tax Incremental Financing District. Financing is being provided by incremental property taxes, general obligation bond proceeds, and investment income. The Village also maintains eight nonmajor special revenue funds. Debt Service Funds are used to account for the accumulation of funds for the periodic payment of principal and interest on general long-term debt. The Village maintains one major debt service fund, the Debt Service Fund. The Debt Service Fund is used to account for the payment of interest and principal on the Village's general long- term debt obligations for the governmental activities. 50 63 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued BASIS OF PRESENTATION - Continued Fund Financial Statements - Continued Governmental Funds - Continued Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by business-type/proprietary funds). The Village maintains one major capital projects fund, the Police and Fire Building Construction Fund. The Police and Fire Building Construction Fund is used to account for the resources to construct the police and fire building. Financing is provided primarily by general obligation bond proceeds. The Village also maintains three nonmajor capital projects funds. Proprietary Funds The focus of proprietary fund measurement is upon determination of operating income, changes in net position, financial position, and cash flows. The generally accepted accounting principles applicable are those similar to businesses in the private sector. Enterprise Funds account for operations for which a fee is charged to external users for goods or services and the activity (a) is financed with debt that is solely secured by a pledge of the net revenues, (b) has third party requirements that the cost of providing services, including capital costs, be recovered with fees and charges or (c) establishes fees and charges based on a pricing policy designed to recover similar costs. The Village maintains one major enterprise fund, the Water and Sewer, which is used to account for the activities of the water and sewer operations. The Village operates sewerage lift and relief stations and waste water collection systems and the water distribution system. The Village maintains two nonmajor enterprise funds. Internal Service Funds are used to account for the financing of goods or services provided by an activity to other departments, funds or component units of the Village on a cost -reimbursement basis. The Village maintains four internal services funds. The Computer Replacement Fund is used to account for the acquisition of Village computer hardware. Financing is being provided by charges to various Village funds. The Risk Management Fund is used to account for the servicing and payment of claims for liability, property, casualty coverage, workers' compensation and medical benefits. Financing is being provided by charges in the various Village funds. The Vehicle Replacement Fund is used to account for the acquisition and depreciation of Village vehicles. Financing is being provided by charges to the General, Water and Sewer, Parking System Revenue and Village Parking Funds. The Vehicle Maintenance Fund is used to account for the maintenance and repair of all Village vehicles. Financing is being provided by charges to various Village funds. The Village's internal service funds are presented in the proprietary funds financial statements. Because the principal users of the internal services are the Village's governmental activities, the financial statements of the internal service funds are consolidated into the governmental column when presented in the government -wide financial statements. To the extent possible, the cost of these services is reported in the appropriate functional activity (general government, public safety, highways and streets, etc.). 51 64 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued BASIS OF PRESENTATION - Continued Fund Financial Statements - Continued Fiduciary Funds Fiduciary funds are used to report assets held in a trustee or custodial capacity for others and therefore are not available to support Village programs. The reporting focus is on net position and changes in net position and is reported using accounting principles similar to proprietary funds. Pension Trust Funds are used to account for assets held in a trustee capacity for pension benefit payments. The Police Pension Fund accounts for the accumulation of resources to pay retirement and other related benefits for sworn members of the Village's police force. The Firefighters' Pension Fund accounts for the accumulation of resources to pay retirement and other related benefits for sworn members of the Village's Fire Department. The Village's pension trust funds are presented in the fiduciary fund financial statements. Since by definition these assets are being held for the benefit of a third party (pension participants) and cannot be used to address activities or obligations of the Village, these funds are not incorporated into the government -wide statements. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING Measurement focus is a term used to describe "which" transactions are recorded within the various financial statements. Basis of accounting refers to "when" transactions are recorded regardless of the measurement focus applied. Measurement Focus On the government -wide Statement of Net Position and the Statement of Activities, both governmental and business -type activities are presented using the economic resources measurement focus as defined below. In the fund financial statements, the "current financial resources" measurement focus or the "economic resources" measurement focus is used as appropriate. All governmental funds utilize a "current financial resources" measurement focus. Only current financial assets/ deferred outflows and liabilities/deferred inflows are generally included on their balance sheets. Their operating statements present sources and uses of available spendable financial resources during a given period. These funds use fund balance as their measure of available spendable financial resources at the end of the period. All proprietary and pension trust funds utilize an "economic resources" measurement focus. The accounting objectives of the "economic resources" measurement focus is the determination of operating income, changes in net position (or cost recovery), financial position, and cash flows. All assets/deferred outflows, liabilities/deferred inflows (whether current or noncurrent) associated with their activities are reported. 52 65 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued MEASUREMENT FOCUS AND BASIS OF ACCOUNTING - Continued Basis of Accounting In the government -wide Statement of Net Position and Statement of Activities, governmental and business -type activities are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability/deferred inflow is incurred or economic asset used. Revenues, expenses, gains, losses, assets/deferred outflows, and liabilities/deferred inflows resulting from exchange and exchange -like transactions are recognized when the exchange takes place. In the fund financial statements, governmental funds are presented on the modified accrual basis of accounting. Under this modified accrual basis of accounting, revenues are recognized when "measurable and available." Measurable means knowing or being able to reasonably estimate the amount. Available means collectible within the current period or within sixty days after year end. The Village recognizes property taxes when they become both measurable and available in accordance with GASB Codification Section P70. A sixty-day availability period is used for revenue recognition for all other governmental fund revenues. Expenditures (including capital outlay) are recorded when the related fund liability is incurred, except for general obligation bond principal and interest which are recognized when due. In applying the susceptible to accrual concept under the modified accrual basis, those revenues susceptible to accrual are property taxes, sales and use taxes, income taxes, use taxes, telecommunications taxes, local and state motor fuel taxes, food and beverages taxes, replacement taxes, franchise taxes, utility taxes, hotel/motel taxes, fines, interest revenue, and charges for services. All other revenues are not susceptible to accrual because generally they are not measurable until received in cash. All proprietary funds and pension trust funds utilize the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the Village's enterprise funds and of the Village's internal service funds are charges to customers for sales and services. The Village also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. 53 66 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND NET POSITION OR EQUITY Cash and Investments Cash and cash equivalents on the Statement of Net Position are considered to be cash on hand, demand deposits, cash with fiscal agent. For the purpose of the proprietary funds "Statement of Cash Flows," cash and cash equivalents are considered to be cash on hand, demand deposits, cash with fiscal agent, and all highly liquid investments with an original maturity of three months or less. Investments are generally reported at fair value. Short-term investments are reported at cost, which approximates fair value. For investments, the Village categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. Interfund Receivables, Payables and Activity Interfund activity is reported as loans, services provided, reimbursements or transfers. Loans are reported as interfund receivables and payables as appropriate and are subject to elimination upon consolidation. Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Any residual balances outstanding between the governmental activities and business -type activities are reported in the government -wide financial statements as "internal balances." Receivables In the government -wide financial statements, receivables consist of all revenues earned at year-end and not yet received. Allowances for uncollectible accounts receivable are based upon historical trends and the periodic aging of accounts receivable. Major receivables balances for governmental activities include property taxes, sales and use taxes, income taxes, utility taxes, and grants. Business -type activities report charges for services as their major receivables. Prepaids/Inventories Prepaids/inventories are valued at cost, which approximates market, using the first-in/first-out (FIFO) method. The cost of governmental fund -type prepaids/inventories are recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaids in both the government -wide and fund financial statements. Deferred Outflows/Inflows of Resources Deferred outflow/inflow of resources represents an acquisition/reduction of net position that applies to a future period and therefore will not be recognized as an outflow of resources (expense)/inflow of resources (revenue) until that future time. 54 67 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND NET POSITION OR EQUITY - Continued Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, stormsewers, and similar items), are reported in the applicable governmental or business -type activities columns in the government -wide financial statements. Capital assets, other than infrastructure, buildings and improvements, purchased or acquired with an original cost of over $20,000 and infrastructure, buildings and improvements with an original cost of over $50,000 are reported at historical cost, or estimated historical cost. Additions, improvements, and other capital outlays that significantly extend the useful life of an asset are capitalized. Other costs incurred for repairs and maintenance are expensed as incurred. The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. General capital assets are long-lived assets of the Village as a whole. Infrastructure such as streets and storm sewers are capitalized. In the case of the initial capitalization of general infrastructure assets (i.e., those reported by the governmental activities) the government chose to include all such items regardless of their acquisition date. The valuation basis for general capital assets is historical cost, or where historical cost is not available, estimated historical cost based on replacement costs. Capital assets in the proprietary funds are capitalized in the fund in which they are utilized. The valuation bases for proprietary fund capital assets are the same as those used for the general capital assets. Donated capital assets are capitalized at acquisition value on the date donated. Depreciation on all assets is computed and recorded using the straight-line method of depreciation over the following estimated useful lives: Buildings and Improvements 20 - 50 Years Vehicles 2 - 20 Years Machinery and Equipment 2 - 20 Years Infrastructure 15 - 50 Years Compensated Absences The Village accrues accumulated unpaid vacation and associated employee -related costs when earned (or estimated to be earned) by the employee. In accordance with GASB Statement No. 16, no liability is recorded for nonvesting accumulation rights to receive sick pay benefits. However, a liability is recognized for that portion of accumulated sick leave that is estimated to be taken as "terminal leave" prior to retirement. All vacation pay is accrued when incurred in the government -wide and proprietary fund financial statements. A liability for these amounts is reported in the governunental funds only if they have matured, for example, as a result of employee resignations and retirements. 55 68 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND NET POSITION OR EQUITY - Continued Long -Term Obligations In the government -wide financial statements, and proprietary fund types in the fund financial statements, long- term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business -type activities, or proprietary fund type Statement of Net Position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as expenses at the time of issuance. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Net Position In the government -wide financial statements, equity is classified as net position and displayed in three components: Net Investment in Capital Assets - Consists of capital assets, including restricted capital assets, net of accumulated depreciation, and reduced by the outstanding balances of any bonds, mortgages, notes or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. Restricted - Consists of net position with constraints placed on the use either by (1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments; or (2) law through constitutional provisions or enabling legislation. Unrestricted - All other net position balances that do not meet the definition of "restricted" or "net investment in capital assets." NOTE 2 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY BUDGETARY INFORMATION All departments of the Village submit requests for appropriations to the Village Manager so that a budget may be prepared. The budget is prepared by fund and includes information on the past year, current year estimates and requested appropriations for the next fiscal year. Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are adopted for the General, Special Revenue, Debt Service, Capital Projects, Enterprise, Internal Service and Pension Trust Funds. All annual appropriations lapse at fiscal year end. 56 69 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 2 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY - Continued BUDGETARY INFORMATION - Continued The proposed budget is presented to the governing body for review. The governing body holds public hearings and may add to, subtract from, or change appropriations, but may not change the forin of the budget. The Village Manager is authorized to transfer budgeted amounts between departments within any fund; however, any revisions that alter the total expenditures of any fund must be approved by the governing body. Expenditures may not legally exceed budgeted appropriations at the fund level. During the year, budget amendments were approved by the Village Board. The final budget figures included in this report reflect all budget amendments made during the year. EXCESS OF ACTUAL EXPENDITURES OVER BUDGET IN INDIVIDUAL FUNDS The following funds had an excess of actual expenditures over budget as of the date of this report: Fund Excess Business District $ 83,245 NOTE 3 - DETAIL NOTES ON ALL FUNDS DEPOSITS AND INVESTMENTS The Village maintains a cash and investment pool that is available for use by all funds except the pension trust funds. Each fund type's portion of this pool is displayed on the financial statements as "cash and investments." In addition, investments are separately held by several of the Village's funds. The deposits and investments of the pension trust funds are held separately from those of other funds. Permitted Deposits and Investments - Illinois Statutes authorizes the Village to make deposits/invest in commercial banks, savings and loan institutions, obligations of the U.S. Treasury and U.S. Agencies, obligations of States and their political subdivisions, credit union shares, repurchase agreements, commercial paper rated within the three highest classifications by at least two standard rating services, Illinois Funds and the Illinois Public Reserves Investment Management Trust. 57 70 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued DEPOSITS AND INVESTMENTS - Continued The deposits and investments of the Pension Funds are held separately from those of other Village funds. Illinois Statutes authorizes the Pension Fund to make deposits/invest in interest bearing direct obligations of the United States of America; obligations that are fully guaranteed or insured as to the payment of principal and interest by the United States of America; bonds, notes, debentures, or similar obligations of agencies of the United States of America; savings accounts or certificates of deposit issued by banks or savings and loan associations chartered by the United States of America or by the State of Illinois, to the extent that the deposits are insured by the agencies or instrumentalities of the federal government; credit unions, to the extent that the deposits are insured by the agencies or instrumentalities of the federal government; State of Illinois bonds; pooled accounts managed by the Illinois Funds Market Fund (Formerly known as IPTIP, Illinois Public Treasurer's Investment Pool), or by banks, their subsidiaries or holding companies, in accordance with the laws of the State of Illinois; bonds or tax anticipation warrants of any county, township, or municipal corporation of the State of Illinois; direct obligations of the State of Israel; money market mutual funds managed by investment companies that are registered under the Federal Investment Company Act of 1940 and the Illinois Securities Law of 1953 and are diversified, open-ended management investment companies, provided the portfolio is limited to specified restrictions; general accounts of life insurance companies; and separate accounts of life insurance companies and mutual funds, the mutual funds must meet specific restrictions, provided the investment in separate accounts and mutual funds does not exceed ten percent of the Pension Fund's plan net position; and corporate bonds managed through an investment advisor, rated as investment grade by one of the two largest rating services at the time of purchase. Pension Funds with plan net position of $2.5 million or more may invest up to forty-five percent of plan net position in separate accounts of life insurance companies and mutual funds. Pension Funds with plan net position of at least $5 million that have appointed an investment advisor, may through that investment advisor invest up to forty-five percent of the plan net position in common and preferred stocks that meet specific restrictions. In addition, Pension Funds with plan net position of at least $10 million that have appointed an investment advisor, may invest up to fifty percent of its net position in common and preferred stocks and mutual funds that meet specific restrictions effective July 1, 2011 and up to fifty-five percent effective July 1, 2012. The Illinois Funds is an investment pool managed by the Illinois Public Treasurer's Office which allows governments within the State to pool their funds for investment purposes. Illinois Funds is not registered with the SEC as an investment company. Investments in Illinois Funds are valued at the share price, the price for which the investment could be sold. The Illinois Public Reserves Investment Management Trust (IPRIME) is an investment opportunity and cash management service for Illinois Municipal Treasurers acting on behalf of counties, townships, cities, towns, villages, special road districts, public water supply districts, fire protection districts, drainage districts, levee districts, sewer districts, housing authorities, and all other political corporations or subdivisions of the State of Illinois. Participation in IPRIME is voluntary. IPRIME is not registered with the SEC as an Investment Company. Investments in IPRIME are valued at the share price, the price for which the investment could be sold. 58 71 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued DEPOSITS AND INVESTMENTS - Continued Village - Interest Rate Risk, Credit Risk, Custodial Credit Risk, and Concentration Risk Deposits. At year-end, the carrying amount of the Village's deposits for governmental and business -type totaled $21,946,311 and the bank balances totaled $22,952,530. In addition, the Village has $30,246,176 invested in IPRIME, and $24,266,558 invested in the Illinois Funds at year-end, which have an average maturity of less than one year. Interest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. In accordance with its investment policy, the Village limits its exposure to interest rate risk by structuring the portfolio to provide liquidity for short and long-term cash flow needs while providing a reasonable rate of return based on the current market. Unless matched to a specific cash flow, maturities should not exceed two years from the date of purchase. Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The Village limits its exposure to credit risk by permitting investments in only those securities allowed under law and by specifically prohibiting investments in leveraged or derivative securities. The Illinois Funds and the IPRIME were rated AAAm by Standard & Poor's. Custodial Credit Risk. In the case of deposits, this is the risk that in the event of a bank failure, the Village's deposits may not be returned to it. The Village's investment policy requires pledging of collateral for all bank balances in excess of federal depository insurance, at an amount not less than 105% of the fair market value of the funds secured, with the collateral witnessed by a written collateral agreement and held by an independent third party in the Village's name. At year-end, the entire amount of the bank balance of deposits was covered by collateral, federal depository or equivalent insurance. For an investment, this is the risk that in the event of the failure of the counterparty, the Village will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. To limit its exposure, the Village's investment policy requires all security transactions that are exposed to custodial credit risk to be processed on a delivery versus payment (DVP) basis with the underlying investments held by an independent third -party custodian and evidenced by safekeeping receipts and a written custodial agreement. The Illinois Funds, and money market mutual funds are not subject to custodial credit risk. Concentration Risk. This is the risk of loss attributed to the magnitude of the Village's investment in a single issuer. The Village's investment policy requires diversification of investment to avoid unreasonable risk. The Village's investment policy states the Village's portfolio shall be diversified in order to limit the investment holdings of a specific issuer or business sector to avoid over concentration in any one institution or area excluding investments in U.S. Treasury securities and authorized investment pools. At year-end, the Village does not have any investments over 5 percent of the cash and investment portfolio (other than investments issued or explicitly guaranteed by the U.S. government and investments in mutual funds, external investment pools, and other pooled investments). 59 72 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued DEPOSITS AND INVESTMENTS - Continued Police Pension Fund - Interest Rate Risk, Credit Risk, Custodial Credit Risk, and Concentration Risk Deposits. At year-end, the carrying amount of the Fund's deposits totaled $3,373,305 and the bank balances totaled $3,373,305. Investments. The following table presents the investments and maturities of the Fund's debt securities as of December 31, 2021: Investment Maturities (in Years) Fair Less Than More Than Investment Type Value 1 1-5 6-10 10 U.S. Government Obligations $ 3,921,780 651,878 2,008,369 1,261,533 — U.S. Agency Obligations 15,444,450 328,304 3,022,554 10,123,993 1,969,599 State and Local Obligations 4,886,907 105,000 1,416,857 2,990,247 374,803 Corporate Bonds 6,236,889 1,115,890 3,811,388 1,309,611 — Totals 30,490,026 2,201,072 10,259,168 15,685,384 2,344,402 The Fund has the following recurring fair value measurements as of December 31, 2021: Investments by Fair Value Level Debt Securities U.S. Government Obligations U.S. Agency Obligations State and Local Obligations Corporate Bonds Equity Securities Mutual Funds Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Totals (Level 1) (Level 2) (Level 3) $ 3,921,780 3,921,780 15,444,450 — 15,444,450 — 4,886,907 — 4,886,907 — 6,236,889 — 6,236,889 — 62,510,528 62,510,528 Total Investments Measured at Fair Value 93,000,554 66,432,308 26,568,246 — 60 73 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued DEPOSITS AND INVESTMENTS - Continued Police Pension Fund - Interest Rate Risk, Credit Risk, Custodial Credit Risk, and Concentration Risk - Continued Investinents - Continued. Debt Securities classified in Level 2 of the fair value hierarchy are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities' relationship to benchmark quoted prices. Interest Rate Risk. In accordance with its investment policy, the Fund limits its exposure to interest rate risk by structuring the portfolio to provide liquidity for all reasonably anticipated operating requirements while providing a reasonable rate of return based on the current market with a minimum return of 7% desired during a market cycle. In addition, no investment in a fixed income security shall have a maturity of greater than 30 years from the time of purchase. Credit Risk. The Fund's investment policy does not address the management of credit risk other than to limit investments to those allowed by state statutes. At year-end, the Fund's investments in U.S. Agency obligations were rated Aaa or not available by Moody's, the state and local obligations were rated Aaa to Aaa3 by Moody's, and the corporate bonds were rated Aaa to Baal by Moody's. Custodial Credit Risk. For deposits, this is the risk that in the event of bank failure the Fund's deposits may not be returned to it. The Fund's investment policy does not address custodial credit risk for deposits. At December 31, 2021, the entire amount of the bank balance of the deposits was covered by federal depository or equivalent insurance. For investments, the Fund's investment policy limits its exposure by requiring all security transactions that are exposed to custodial credit risk to be processed on a delivery versus payment (DVP) basis with the underlying investments held by a third party custodian, in the name of the respective Fund, and evidenced by safekeeping receipts. Concentration Risk. The Fund's investment policy requires diversification of investment to avoid unreasonable risk. No financial institution, except any securities custodians of the Fund, shall hold more than 10% of the Fund's portfolio at any time. Neither shall The Illinois Funds hold more than 10% of the Fund's portfolio at any time. In addition, the following allocations are desired: depository accounts and money market mutual funds at 1% to 5%, fixed income securities at 40% to 44%, and equity securities at 55%. In addition to the securities and fair values listed above, the Fund also has $62,510,528 invested in mutual funds. At year-end, the Fund does not have any investments (other than investments issued or explicitly guaranteed by the U.S. government and investments in mutual funds, external investment pools, and other pooled investments) in any one organization that represent 5 percent or more of net position available for retirement benefits. 61 74 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued DEPOSITS AND INVESTMENTS - Continued Police Pension Fund - Interest Rate Risk, Credit Risk, Custodial Credit Risk, and Concentration Risk - Continued Concentration Risk - Continued. The Fund's investment policy in accordance with Illinois Compiled Statutes (ILCS) establishes the following target allocation across asset classes: Long -Term Expected Real Asset Class Target Return Fixed Income Equity Mutual Funds Cash 35.00% 1.40% 65.00% 6.25% 0.00% 0.00% Illinois Compiled Statutes (ILCS) limit the Fund's investments in equities, mutual funds and variable annuities to 65%. Securities in any one company should not exceed 5% of the total fund. The long-term expected rate of return on the Fund's investments was determined using an asset allocation study conducted by the Fund's investment management consultant in April 2022 in which best -estimate ranges of expected future real rates of return (net of pension plan investment expense and inflation) were developed for each major asset class. These ranges were combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding the expected inflation. Best estimates or arithmetic real rates of return for each major asset class included in the Fund's target asset allocation as of December 31, 2021 are listed in the table above. Rate of Return For the year ended December 31, 2021, the annual money -weighted rate of return on pension plan investments, net of pension plan investment expense, was 15.66%. The money -weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. 62 75 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued DEPOSITS AND INVESTMENTS - Continued Firefighters' Pension Fund - Interest Rate Risk, Credit Risk, Custodial Credit Risk, and Concentration Risk Deposits. At year-end, the carrying amount of the Fund's deposits totaled $4,712,777 and the bank balances totaled $4,712,687. Investments. At year-end, the Firefighters' Pension Fund has the following investments and maturities: Investment Maturities (in Years) Fair Less Than More Than Investment Type Value 1 1-5 6-10 10 U.S. Government Obligations $ 8,034,942 1,299,935 4,389,846 2,345,161 — U.S. Agency Obligations 10,176,391 2,520 2,991,210 1,129,300 6,053,361 State and Local Obligations 416,890 105,000 311,890 Corporate Bonds 10,318,952 810,221 6,083,968 3,285,018 139,745 Totals 28,947,175 2,217,676 13,776,914 6,759,479 6,193,106 The Fund has the following recurring fair value measurements as of December 31, 2021: Total Investments Measured at Fair Value 80,213,915 59,301,682 20,912,233 — 63 76 Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Investments by Fair Value Level Totals (Level 1) (Level 2) (Level 3) Debt Securities U.S. Government Obligations $ 8,034,942 8,034,942 U.S. Agency Obligations 10,176,391 — 10,176,391 — State and Local Obligations 416,890 — 416,890 — Corporate Bonds 10,318,952 — 10,318,952 — Equity Securities Real Estate Annuity 7,920,247 7,920,247 Mutual Funds 43,346,493 43,346,493 Total Investments Measured at Fair Value 80,213,915 59,301,682 20,912,233 — 63 76 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued DEPOSITS AND INVESTMENTS - Continued Firefighters' Pension Fund - Interest Rate Risk, Credit Risk, Custodial Credit Risk, and Concentration Risk - Continued Investments - Continued. Debt Securities classified in Level 2 of the fair value hierarchy are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities' relationship to benchmark quoted prices. Interest Rate Risk. In accordance with its investment policy, the Fund limits its exposure to interest rate risk by structuring the portfolio to provide liquidity for all reasonably anticipated operating requirements while providing a reasonable rate of return based on the current market with a minimum return of 7% desired during a market cycle. In addition, no investment in a fixed income security shall have a maturity of greater than 30 years from the time of purchase. Credit Risk. The Fund's investment policy does not address the management of credit risk other than to limit investments to those allowed by state statutes. At year-end, the Fund's investments in U.S. Agency obligations were rated Aaa or not available by Moody's, the state and local obligations were rated Aaa to Aaa3 by Moody's, and the corporate bonds were rated Aaa to Baa2 by Moody's. Custodial Credit Risks. For deposits, the Fund's investment policy requires pledging of collateral for all bank balances in excess of federal depository insurance, at an amount not less than 110% of the fair market value of the funds secured, with the collateral held by an independent third party or the Federal Reserve Bank, and evidenced by safekeeping receipts. At December 31, 2021, the entire amount of the bank balance of the deposits was covered by federal depository or equivalent insurance. For investments, the Fund will not be able to recover the value of its investments that are in possession of an outside party. To limit its exposure, the Fund's investment policy requires all security transactions that are exposed to custodial credit risk to be processed on a delivery versus payment (DVP) basis with the underlying investments held by a third -party custodian and evidenced by safekeeping receipts. Concentration Risk. The Fund's investment policy requires diversification of investment to avoid unreasonable risk. No financial institution, except any securities custodians and fixed income investment managers of the Fund, shall hold more than 10% of the Fund's portfolio at any time. Neither shall The Illinois Funds hold more than 10% of the Fund's portfolio at any time. In addition, the following allocations are desired: depository accounts and money market mutual funds at 1% to 5%, fixed income securities at 50% to 54%, and 55% in equity securities. In addition to the securities and fair values listed above, the Fund also has $43,346,493 invested in mutual funds and $7,920,247 invested in real estate. At year-end, the Fund has over 5 percent of net plan assets available for retirement benefits (other than investments issued or explicitly guaranteed by the U.S. government and investments in mutual funds, external investment pools, and other pooled investments) invested in Real Estate Annuity of $7,920,247. 64 77 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued DEPOSITS AND INVESTMENTS - Continued Firefighters' Pension Fund - Interest Rate Risk, Credit Risk, Custodial Credit Risk, and Concentration Risk - Continued Concentration Risk - Continued. The Fund's investment policy in accordance with Illinois Compiled Statutes (ILLS) establishes the following target allocation across asset classes: Long -Term Expected Real Asset Class Target Return Fixed Income 35.00% 2.50% Equity Mutual Funds 55.00% 6.25% Real Estate 10.00% 4.50% Cash 0.00% 0.00% Illinois Compiled Statutes (ILCS) limit the Fund's investments in equities, mutual funds and variable annuities to 65%. Securities in any one company should not exceed 5% of the total fund. The long-term expected rate of return on the Fund's investments was determined using an asset allocation study conducted by the Fund's investment management consultant in April 2022 in which best -estimate ranges of expected future real rates of return (net of pension plan investment expense and inflation) were developed for each major asset class. These ranges were combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding the expected inflation. Best estimates or arithmetic real rates of return for each major asset class included in the Fund's target asset allocation as of December 31, 2021 are listed in the table above. Rate of Return For the year ended December 31, 2021, the annual money -weighted rate of return on pension plan investments, net of pension plan investment expense, was 8.87%. The money -weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. PROPERTY TAXES Property taxes for 2020 attach as an enforceable lien on January 1, on property values assessed as of the same date. Taxes are levied by December of the subsequent fiscal year (by passage of a Tax Levy Ordinance). Tax bills are prepared by Cook County and are payable in two installments, on or about March 1 and September 1 during the following year. The County collects such taxes and remits them periodically. The allowance for uncollectible taxes has been stated at 2% of the tax levy, to reflect actual collection experience. 65 78 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued CAPITAL ASSETS Governmental Activities Governmental capital asset activity for the year was as follows: Nondepreciable Capital Assets Land Construction in Progress Depreciable Capital Assets Buildings Improvements Other than Buildings Vehicles Machinery and Equipment Infrastructure Less Accumulated Depreciation Buildings Improvements Other than Buildings Vehicles Machinery and Equipment Infrastructure Beginning Ending Balances Increases Decreases Balances $ 15,612,320 15,612,320 24,924,802 8,903,022 24,194,836 9,632,988 40,537,122 8,903,022 24,194,836 25,245,308 55,818,844 23,829,915 — 79,648,759 1,516,920 42,997 — 1,516,920 12,462,320 282,575 223,372 12,521,523 6,386,812 198,772 550,169 6,035,415 94,072,716 4,161,723 1,505 98,232,934 170,257,612 28,472,985 775,046 197,955,551 13,551,058 1,348,454 — 14,899,512 427,667 42,997 — 470,664 7,186,486 927,212 177,518 7,936,180 2,723,388 396,075 545,806 2,573,657 75,912,961 2,067,369 1,505 77,978,825 99,801,560 4,782,107 724,829 103,858,838 Total Net Depreciable Capital Assets 70,456,052 23,690,878 50,217 94,096,713 Total Net Capital Assets 110,993,174 32,593,900 24,245,053 119,342,021 Depreciation expense was charged to governmental activities as follows: General Government $ 531,147 Public Safety 919,439 Highways and Streets 2,195,806 Health 2,349 Welfare 3,751 Culture and Recreation 7,240 Internal Service 1,122,375 4,782,107 66 79 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued CAPITAL ASSETS - Continued Business -Type Activities Business -type capital asset activity for the year was as follows: Beginning 4,499,808 Balances Ending as Restated Increases Decreases Balances Nondepreciable Capital Assets Land $ 17,318,818 17,318,818 Construction in Progress 2,456,520 1,987,904 2,418,527 2,025,897 19,775,338 1,987,904 2,418,527 19,344,715 Depreciable Capital Assets Building and Improvements 4,499,808 4,499,808 Machinery and Equipment 5,017,968 5,017,968 Infrastructure 38,975,951 4,334,941 648,571 42,662,321 48,493,727 4,334,941 648,571 52,180,097 Less Accumulated Depreciation Building and Improvements 3,129,107 64,922 — 3,194,029 Machinery and Equipment 3,731,445 112,147 — 3,843,592 Infrastructure 16,135,773 663,525 634,016 16,165,282 22,996,325 840,594 634,016 23,202,903 Total Other Capital Assets 25,497,402 3,494,347 14,555 28,977,194 Total Capital Assets 45,272,740 5,482,251 2,433,082 48,321,909 Depreciation expense was charged to business -type activities as follows: Water and Sewer $ 840,594 67 80 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued INTERFUND TRANSFERS Interfund transfers for the year consisted of the following: Transfer In Transfer Out Amount Debt Service Police and Fire Building Construction $ 4,819 Nonmajor Governmental General 4,000,000 Nonmajor Governmental Nonmajor Governmental 540,000 4,544,819 The purpose of significant transfers from/to between funds are as follows: • $4,819 transferred to the Debt Service Fund from the Police and Fire Building Construction Fund to transfer the remaining fund balance. • $4,000,000 transferred to the Capital Improvement Fund ($750,000) and the Flood Control Construction Fund ($3,250,000), both nonmajor governmental funds, from the General Fund to fund general construction projects in the Village and to fund the Aspen Trails Flood Control Project. • $540,000 transferred to the Flood Control Construction Fund, a nonmajor governmental fund, from the Street Improvement Fund, a nonmajor governmental fund, to fund the Aspen Trails Flood Control Project. INTERFUND BALANCES Interfund balances are advances in anticipation of receipts. The composition of interfund balances as of the date of this report, is as follows: Receivable Fund Payable Fund Amount General Nonmajor Governmental $ 1,801,494 Police Pension General 20,634 Fire Pension General 18,457 1,840,585 68 81 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued INTERGOVERNMENTAL RECEIVABLES The following receivables are included in due from other governments on the statement of net position: Governmental Activities Mount Prospect Public Library Grants Miscellaneous Total 1,557,343 1,834,372 96,011 3,487,726 The Series 2006 General Obligation Library Refunding Bonds, the Series 2011A General Obligation Refunding Bonds, and the Series 2016 General Obligation Refunding Bonds were issued to provide financing to the Mount Prospect Public Library (the Library). The Library is repaying these bonds issued by the Village. The Series 2006 General Obligation Library Refunding Bonds were refunded by the Series 2016 General Obligation Refunding Bonds during fiscal year 2016. The future principal and interest payments owed from the Library are as follows with the principal portion recorded as an intergovernmental receivable in the debt service fund/governmental activities. The annual debt service requirements are as follows: Fiscal Year Principal Interest 2022 S 1,550,000 31,000 NOTE 3 - DETAIL NOTES ON ALL FUNDS LONG-TERM DEBT Asset Retirement Obligation The Village has recognized an asset retirement obligation (ARO) and related deferred outflow of resources in connection with its obligation to seal and abandon various water wells at the end of their estimated useful lives in accordance with the Illinois Administrative Code Title 77. The ARO was measured using actual historical costs for similar abandonments, adjusted for inflation through the end of the year. The estimated remaining useful lives of the water wells are 100 years. 69 82 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued LONG-TERM DEBT - Continued General Obligation Bonds The Village issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds have been issued for governmental and business -type activities. General obligation bonds are direct obligations and pledge the full faith and credit of the Village. General obligation bonds currently outstanding are as follows: Fund Debt Beginning Ending Issue Retired by Balances Issuances Retirements Balances $2,975,000 General Obligation Bonds of 2012, due in annual installments of $610,000 to $885,000 plus interest at 3.10% Debt through December 1, 2022. Service $ 1,745,000 — 860,000 885,000 $9,800,000 General Obligation Bonds of 2013, due in annual installments of $555,000 to $885,000 plus interest at 3.00% to 4.125% through December 1, Debt 2033. Service 9,245,000 — 570,000 8,675,000 $6,290,000 General Obligation Bonds of 2014, due in annual installments of $290,000 to $1,265,000 plus interest at 3.00% Debt through December 1, 2023. Service 3,355,000 — 965,000 2,390,000 70 83 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued LONG-TERM DEBT - Continued General Obligation Bonds - Continued Issue $8,735,000 General Obligation Refunding Bonds of 2016, due in annual installments of $1,375,000 to $1,550,000 plus interest at 2.00% to 3.00% through December 1, 2022. Fund Debt Beginning Retired by Balances Debt Service $ 3,065,000 Ending Issuances Retirements Balances 1,515,000 1,550,000 $9,100,000 General Obligation Refunding Bonds of 2016A, due in annual installments of $120,000 to $1,905,000 plus interest at 3.00% through Debt December 1, 2028. Service 8,860,000 8,860,000 $9,740,000 General Obligation Bonds of 2017, due in annual Prospect and installments of $125,000 to Main TIF 4,815,000 — 140,000 4,675,000 $460,000 plus interest at 2.50% to Water and 4.00% through December 1, 2037. Sewer 4,535,000 — 150,000 4,385,000 $11,950,000 General Obligation prospect and Bonds of 2018A, due in annual Main TIF 7,060,000 — 180,000 6,880,000 installments of $115,000 to $700,000 plus interest at 3.25% to Water and 5.00% through December 1, 2037. Sewer 4,470,000 — 135,000 4,335,000 $38,440,000 General Obligation Bonds of 2018B, due in annual installments of $155,000 to $3,110,000 plus interest at 3.625% to 5.000% through Debt December 1, 2043. Service 37,585,000 — 360,000 37,225,000 71 84 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued LONG-TERM DEBT - Continued General Obligation Bonds - Continued Fund Debt Beginning Ending Issue Retired by Balances Issuances Retirements Balances $9,600,000 General Obligation Bonds of 2019A, due in annual installments of $60,000 to $800,000 plus interest at 2.00% to Water and 5.00% through December 1, 2039. Sewer $ 9,540,000 $7,725,000 General Obligation Bonds of 2019B, due in annual installments of $210,000 to $740,000 plus interest at 3.00% to Prospect and 5.00% through December 1, 2039. Main TIF 7,725,000 Limited Tax Note Payable 240,000 9,300,000 7,725,000 102,000,000 — 5,115,000 96,885,000 The Village has issued a note payable (direct borrowing) related to a developer agreement. The limited tax note payable has been issued for the governmental activities and is a limited obligation of the Village, payable solely from certain tax revenues as set forth in the developer agreement. The developer agreement term will expire upon the earlier to occur of (a) the expiration of the term of any bonds issued by the Village which yield developer proceeds equal to the maximum reimbursement amount, (b) the date which all obligations under this agreement have been discharged, including, but not limited to, payments on any bonds issued by the Village and on the note payable, or (c) 35 years following the issuance of the note payable. After a final accounting is completed and any remaining amounts are paid to the developer, the note payable shall be marked "cancelled" and returned to the Village. Notes payable currently outstanding are as follows: Fund Debt Beginning Ending Issue Retired by Balances Issuances Retirements Balances $25,000,000 Business District Limited Tax Note Payable of 2010, due in semiannual installments plus interest at 6.710% contingent upon sufficient Business pledged revenues. District $ 35,905,176 2,371,070 1,545,724 36,730,522 72 85 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued LONG-TERM DEBT - Continued Long -Term Liabilities Activity Changes in long-term liabilities during the fiscal year were as follows: Beginning Ending Type of Debt Balances Additions Deductions Balances Governmental Activities Compensated Absences General Internal Services Claims Payable Net Pension Liability/(Asset) IMRF Police Pension Firefighters' Pension Total OPEB Liability - RBP General Internal Services General Obligation Bonds Unamortized Premium Business District Limited Tax Note Payable S 4,120,193 61,795 104,920 35,632 699,198 208,542 4,140,549 - 37,487,635 7,748,730 32,549,685 7,460,727 Amounts within One Year 123,590 4,058,398 932,229 71,264 69,288 13,858 358,231 549,509 281,227 6,818,864 (2,678,315) 45,236,365 40,010,412 13,066,287 - 338,111 12,728,176 - 542,550 - 68,283 474,267 - 83,455,000 - 4,590,000 78,865,000 4,505,000 2,691,970 - 273,802 2,418,168 - 35,905,176 2,371,070 1,545,724 36,730,522 958,001 22,301,994 6,434 1,937,565 20,370,863 633,271 For the governmental activities, payments on the compensated absences, the net pension liabilities/(asset) and the total OPEB liability are made by the General Fund. Payments on general obligation bonds are being liquidated by the Debt Service Fund and the Prospect and Main TIF, and the Business District Limited Tax Note Payable is being liquidated by the Business District Fund. Internal service funds predominantly serve the governmental funds. Accordingly, long-term liabilities for them are included as part of the above totals for governmental activities. 73 86 214,763,163 17,886,496 14,187,869 218,461,790 6,690,315 Business -Type Activities Compensated Absences 297,789 6,434 12,868 291,355 58,271 Net Pension Liability/(Asset) - IMRF 799,264 - 1,326,901 (527,637) - Total OPEB Liability - RBP 1,248,443 - 36,219 1,212,224 - Asset Retirement Obligation 750,000 - - 750,000 - General Obligation Bonds 18,545,000 - 525,000 18,020,000 575,000 Unamortized Premium 661,498 - 36,577 624,921 - 22,301,994 6,434 1,937,565 20,370,863 633,271 For the governmental activities, payments on the compensated absences, the net pension liabilities/(asset) and the total OPEB liability are made by the General Fund. Payments on general obligation bonds are being liquidated by the Debt Service Fund and the Prospect and Main TIF, and the Business District Limited Tax Note Payable is being liquidated by the Business District Fund. Internal service funds predominantly serve the governmental funds. Accordingly, long-term liabilities for them are included as part of the above totals for governmental activities. 73 86 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued LONG-TERM DEBT - Continued Long -Term Liabilities Activity - Continued Additionally, for business -type activities, compensated absences are liquidated by the Water and Sewer, Parking System Revenue and Village Parking System Funds. The net pension liability/(asset), the total OPEB liability and the general obligation bonds are being liquidated by the Water and Sewer Fund. Debt Service Requirements to Maturity The annual debt service requirements to maturity, including principal and interest, are as follows: Fiscal Year Governmental Activities General Obligation Bonds Principal Interest Business -Type Activities General Obligation Bonds Principal Interest 2022 $ 4,505,000 2,984,378 575,000 638,332 2023 2,990,000 2,858,192 625,000 611,182 2024 3,125,000 2,758,092 680,000 581,682 2025 3,285,000 2,631,142 740,000 549,582 2026 3,450,000 2,510,192 805,000 514,632 2027 3,605,000 2,384,742 860,000 478,782 2028 3,785,000 2,257,668 920,000 447,832 2029 3,455,000 2,127,075 980,000 414,400 2030 3,750,000 1,975,799 1,045,000 378,450 2031 3,955,000 1,815,013 1,110,000 344,694 2032 4,170,000 1,645,689 1,170,000 307,756 2033 4,400,000 1,467,375 1,245,000 268,832 2034 3,715,000 1,280,170 1,315,000 229,420 2035 3,900,000 1,151,550 1,390,000 187,788 2036 4,090,000 1,014,519 1,460,000 144,244 2037 4,285,000 870,125 1,540,000 98,012 2038 3,260,000 718,400 760,000 48,750 2039 3,400,000 598,200 800,000 25,000 2040 2,765,000 469,600 - - 2041 2,875,000 359,000 2042 2,990,000 244,000 - - 2043 3,110,000 124,400 Totals 78,865,000 34,245,321 18,020,000 6,269,370 74 87 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued LONG-TERM DEBT - Continued Legal Debt Margin Article VII, Section 6(k) of the 1970 Illinois Constitution governs the computation of legal debt margin. "The General Assembly may limit by law the amount and require referendum approval of debt to the incurred by home rule municipalities, payable from ad valorem property tax receipts, only in excess of the following percentages of the assessed value of its taxable property ... (2) if its population is more than 25,000 and less than 500,000 an aggregate of one percent: indebtedness which is outstanding on the effective date (July 1, 1971) of this constitution or which is thereafter approved by referendum... shall not be included in the foregoing percentage amounts." To date the Illinois General Assembly has set no limits for home rule municipalities. The Village is a home rule municipality. NET POSITION CLASSIFICATIONS Net investment in capital assets was comprised of the following as of December 31, 2021: Governmental Activities Capital Assets - Net of Accumulated Depreciation $ 119,342,021 Plus: Unamortized Refunding Loss Less Capital Related Debt: General Obligation Bonds of 2012 General Obligation Bonds of 2013 General Obligation Bonds of 2014 General Obligation Refunding Bonds of 2016 General Obligation Refunding Bonds of 2016A General Obligation Bonds of 2017 General Obligation Bonds of 2018A General Obligation Bonds of 2018B General Obligation Bonds of 2019B Premium on Debt Issuance Net Investment in Capital Assets 236,079 (885,000) (8,675,000) (2,390,000) (1,550,000) (8,860,000) (4,675,000) (6,880,000) (37,225,000) (7,725,000) (2,418,168) 38,294,932 75 88 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued NET POSITION CLASSIFICATIONS - Continued Business -Type Activities Capital Assets - Net of Accumulated Depreciation $ Less Capital Related Debt: General Obligation Bonds of 2017 General Obligation Bonds of 2018A General Obligation Bonds of 2019A 48,321,909 (4,385,000) (4,335,000) (9,300,000) Premium on Debt Issuance (624,921) Net Investment in Capital Assets 29,676,988 FUND BALANCE CLASSIFICATIONS In the governmental funds financial statements, the Village considers restricted amounts to have been spent when an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available. The Village first utilizes committed, then assigned and then unassigned fund balance when an expenditure is incurred for purposes for which all three unrestricted fund balances are available. Nonspendable Fund Balance. Consists of resources that cannot be spent because they are either: a) not in a spendable form; or b) legally or contractually required to be maintained intact. Restricted Fund Balance. Consists of resources that are restricted to specific purposes, that is, when constraints placed on the use of resources are either: a) externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments; or b) imposed by law through constitutional provisions or enabling legislation. Committed Fund Balance. Consists of resources constrained (issuance of an ordinance) to specific purposes by the government itself, using its highest level of decision-making authority, the Board of Trustees; to be reported as committed, amounts cannot be used for any other purpose unless the government takes the same highest -level action to remove or change the constraint. Assigned Fund Balance. Consists of amounts that are constrained by the Board of Trustees's intent to be used for specific purposes but are neither restricted nor committed. Intent is expressed by a) the Board of Trustees itself or b) a body or official to which the Board of Trustees has delegated the authority to assign amounts to be used for specific purposes. The Village's highest level of decision-making authority is the Board of Trustees, who is authorized to assign amounts to a specific purpose. Unassigned Fund Balance. Consists of residual net resources of a fund that has not been restricted, committed, or assigned within the General Fund and deficit fund balances of other governmental funds. 76 89 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued FUND BALANCE CLASSIFICATIONS - Continued Minimum Fund Balance Policy. The Village's policy manual states that the General Fund should maintain an unrestricted fund balance level between 20% to 30% of the subsequent fiscal year's expenditures, the special revenue funds (except the CDBG Fund) should maintain a fund balance level between 10% and 25% of the annual budgeted expenditures, not including capital, debt service and transfers, the Debt Service Fund should maintain a fund balance level at a maximum of the amount of the next principal and interest payment due, and the Capital Projects Fund should maintain a fund balance level between 25% and 50% of the five-year average for capital expenditures supported by the fund to a maximum of $1 million. The following is a schedule of fund balance classifications for the governmental funds as of the date of this report: Fund Balances Nonspendable Inventories Prepaids Restricted Public Safety Police Fire Highways and Streets Debt Service Special Revenue Capital Projects Prospect/ Police and Fire Main Debt Building General TIF Service Construction Nonmajor Totals 1,922 1,922 340,450 79,781 420,231 342,372 79,781 422,153 395,781 312,054 312,054 477,734 477,734 4,480,280 4,876,061 — 1,782,485 — — 1,782,485 395,781 1,782,485 — 5,270,068 7,448,334 Committed Refuse Disposal 1,012,349 1,012,349 Assigned Debt Service TIF Redevelopment 3,700,000 3,700,000 Capital Projects 8,157,144 8,157,144 3,700,000 8,157,144 11,857,144 Unassigned 30,752,940 8,120 30,761,060 Total Fund Balances 34,795,312 395,781 1,782,485 — 14,527,462 51,501,040 77 90 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued NET POSITION RESTATEMENT Beginning net position was restated to correct a change in accounting practice in the business -type activities capital assets. The following is a summary of the net position as originally reported and as restated: Net Position As Reported As Restated Increase Business -Type Activities Water and Sewer NOTE 4 - OTHER INFORMATION RISK MANAGEMENT $ 37,894,823 43,413,133 5,518,310 37,463,986 42,982,296 5,518,310 The Village is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; natural disasters; and injuries to the Village's employees. These risks, along with medical claims for employees and retirees, are provided for through the Village's participation in the Intergovernmental Risk Management Agency (IRMA) and the Intergovernmental Personnel Benefit Cooperative (IPBC). There have been no significant reductions in coverage from the prior year and settled claims have not exceeded coverage for any of the past three years. Intergovernmental Risk Management Agency (IRMA) The Village participates in the Intergovernmental Risk Management Agency (IRMA). IRMA is an organization of municipalities and special districts in Northeastern Illinois which have formed an association under the Illinois Intergovernmental Cooperations Statute to pool its risk management needs. The agency administers a mix of self- insurance and commercial insurance coverages; property/casualty and workers' compensation claim administration/litigation management services; unemployment claim administration; extensive risk management/ loss control consulting and training programs; and a risk information system and financial reporting service for its members. Each member appoints one delegate, along with an alternate delegate, to represent the member on the Board of Directors. The Village does not exercise any control over the activities of the Agency beyond its representation on the Board of Directors. Initial contributions are determined each year based on the individual member's eligible revenue as defined in the by-laws of IRMA and experience modification factors based on past member loss experience. Each member assumes the first $10,000 (higher optional deductibles available) of each occurrence, and IRMA has self- insurance retentions at various amounts above that level. Members have a contractual obligation to fund any deficit of IRMA attributable to a membership year during which they were a member. Supplemental contributions may be required to fund these deficits. The Village's payments to IRMA are displayed on the financial statements as expenditures/expenses in the appropriate funds. The coverages provided by IRMA are generally consistent with the coverages in the prior year. 78 91 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 4 - OTHER INFORMATION - Continued RISK MANAGEMENT - Continued Intergovernmental Risk Management Agency (IRMA) - Continued The Village has chosen an optional higher deductible of $50,000. A related reserve deposit of $1,249,584 is being held at IRMA at December 31, 2021. The Village's insurance activities are reported in the Risk Management Fund which is an internal service fund. Premiums are paid into the Risk Management Fund by the departments of the General Fund and other funds based upon historical cost estimates. The total claims liability remaining as of December 31, 2021 was $549,509. Changes in the balances of claims liabilities during the fiscal year are as follows: Workers' General Auto Compensation Liability Totals Claims Payable - December 31, 2019 $ 390,824 24,085 414,909 Incurred Claims 44,366 903,218 159,717 1,107,301 Claims Paid (43,972) (713,675) (65,365) (823,012) Claims Payable - December 31, 2020 394 580,367 118,437 699,198 Incurred Claims 17,718 84,884 105,940 208,542 Claims Paid (18,112) (221,387) (118,732) (358,231) Claims Payable - December 31, 2021 443,864 105,645 549,509 Intergovernmental Personnel Benefit Cooperative (IPBC) Risks for medical and death benefits for employees and retirees are provided for through the Village's participation in the Intergovernmental Personnel Benefit Cooperative (IPBC). IPBC acts as an administrative agency to receive, process and pay such claims as may come within the benefit program of each member. IPBC maintains specific reinsurance coverage for claims in excess of $75,000 per individual employee participant. The Village pays premiums to IPBC based upon current employee participation and its prior experience factor with the pool. Current year overages or underages for participation in the pool are adjusted into subsequent years experience factor for premiums. There were no significant changes in insurance coverages from the prior year and settlements did not exceed insurance coverage in any of the past three fiscal years. A reserve deposit of $3,579,477 is being held at IPBC at December 31, 2021. 79 92 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 4 - OTHER INFORMATION - Continued CONTINGENT LIABILITIES Litigation The Village is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the Village's attorneys, the resolution of these matters will not have a material adverse effect on the financial condition of the Village. Grants Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be deterinined at this time although the Village expects such amounts, if any, to be immaterial. Financial Impact from COVID-19 In March 2020, the World Health Organization declared the COVID-19 virus a public health emergency. As of the date of this report, the extent of the impact of COVID-19 on the Village's operations and financial position cannot be determined. COMMITMENTS Solid Waste Agency of Northern Cook County (SWANCC) Annual payments to Solid Waste Agency of Northern Cook County (SWANCC) are based on estimated tonnage of waste transported to SWANCC. It is assumed that there will be no material changes in deliveries to SWANCC. For 2022, the Village estimates it will pay SWANCC $1,016,029, with annual increases ranging from 0% to 3% through 2023. Northwest Suburban Municipal Joint Action Water Agency (JAWA) The Village has committed to purchase water from the Northwest Suburban Municipal Joint Action Water Agency (JAWA). A new agreement, negotiated by the Member Communities and JAWA was approved on March 13, 2018. This Revised Water Supply Agreement will expire in FY 2032. The obligation to pay minimum annual amounts was removed from the new agreement. 80 93 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 4 - OTHER INFORMATION - Continued JOINT VENTURES Northwest Suburban Municipal Joint Action Water Agency (JAWA) The Village is a member of the Northwest Suburban Municipal Joint Action Water Agency (JAWA) which consists of seven municipalities. JAWA is a municipal corporation and public body politic and corporate established pursuant to the Intergovernmental Cooperation Act of the State of Illinois. JAWA is empowered to plan, construct, improve, extend, acquire, finance, operate and maintain a water supply system to serve its members and other potential water purchasers. The seven members of JAWA and their percentage shares as of April0, 2021 are as follows: Percent Share Village of Elk Grove Village 17.94% Village of Hanover Park 8.95% Village of Hoffman Estates 15.58% Village of Mount Prospect 12.58% City of Rolling Meadows 6.48% Village of Schaumburg 27.42% Village of Streamwood 11.05% 100.00% These percentage shares are based upon formulae contained in the water supply agreement and are subject to change in future years based upon consumption by the municipalities. The members form a contiguous geographic service area which is located 15 to 30 miles northwest of downtown Chicago. Under the Agency Agreement, additional members may join JAWA upon the approval of each member. JAWA is governed by a Board of Directors which consists of one elected official from each member municipality. Each Director has an equal vote. The officers of JAWA are appointed by the Board of Directors. The Board of Directors determines the general policy of JAWA, makes all appropriations, approves contracts for sale or purchase of water, provides for the issuance of debt, adopts bylaws, rules and regulations, and exercises such powers and performs such duties as may be prescribed in the Agency Agreement or the bylaws. 81 94 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 4 - OTHER INFORMATION - Continued JOINT VENTURES - Continued Northwest Suburban Municipal Joint Action Water Agency (JAWA) - Continued Complete financial statements can be obtained from the Northwest Suburban Municipal Joint Action Water Agency, 901 Wellington Avenue, Elk Grove Village, Illinois 60007. Revenues of the system consist of. (a) all receipts derived from Water Supply Agreements or any other contract for the supply of water; (b) all income derived from the investment of monies; and (c) all income, fees, water service charges, and all rates, rents and receipts derived by JAWA from the ownership and operation of the system and the sale of water. JAWA covenants to establish fees and charges sufficient to provide revenues to meet all its requirements. JAWA has entered into Water Supply Agreements with the seven -member municipalities for a term of 40 years, extending to December 31, 2032. The Agreements are irrevocable and may not be terminated or amended except as provided in the General Resolution. JAWA has entered into an agreement with the City of Chicago under which the City has agreed to sell quantities of lake water sufficient to supply the projected water needs of JAWA through the year 2020. The obligation of the Village to make all payments as required by this agreement is unconditional and irrevocable, without regard to performance or nonperformance by JAWA of its obligations under this Agreement. The payments required to be made by the Village under this Agreement shall be required to be made solely from revenues to be derived by the Village from the operation of the Water System. Members are not prohibited by the Agreement, however, from using other available funds to make payments under the Agreement. This Agreement shall not constitute an indebtedness of the Village within the meaning of any statutory or constitutional limitation. The obligation of the Village to make payments required by this Agreement from revenues of the Water System shall be payable from the operation and maintenance account of the Water and Sewer Fund. In accordance with the joint venture agreement, the Village remitted $7,239,644 to JAWA for the year ended December 31, 2021. All payments were paid from the Water and Sewer Fund. Deposits with JAWA in the amount of $464,034 represent amounts held for security of debt service. 82 95 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 4 - OTHER INFORMATION - Continued JOINT VENTURES - Continued Solid Waste Agency of Northern Cook County (SWANCC) The Village is a member of the Solid Waste Agency of Northern Cook County (SWANCC) which consists of twenty-three municipalities. SWANCC is a municipal corporation and public body politic, established pursuant to the Constitution of the State of Illinois and the Intergovernmental Cooperation Act of the State of Illinois, as amended (the Act). SWANCC is empowered under the Act to plan, construct, finance, operate, and maintain a solid waste disposal system to serve its members. SWANCC is reported as a nonequity proprietary joint venture. SWANCC is governed by a Board of Directors which consists of one appointed representative from each member municipality. Each Director has an equal vote. The officers of SWANCC are appointed by the Board of Directors. The Board of Directors determines the general policy of SWANCC, makes all appropriations, approves contracts, adopts resolutions providing for the issuance of bonds or notes by SWANCC, adopts by-laws, rules and regulations, and exercises such powers and performs such duties as may be prescribed in the SWANCC agreement or by-laws. Separate audited financial statements are available from SWANCC's administrative office at 77 W Hintz Road, Suite 200, Wheeling, Illinois 60090. The Village's contract with SWANCC provides that each member is liable for its proportionate share of annual operating and fixed costs. The Village's share of these costs is expected to be funded through tipping fees paid by refuse haulers. In addition, the Village is obligated for any costs arising from defaults in payment obligations by other members. In accordance with the joint venture agreement, the Village remitted $1,051,223 to SWANCC for the year ended December 31, 2021, which is recorded in the Village's Refuse Disposal Fund. EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS The Village contributes to three defined benefit pension plans, the Illinois Municipal Retirement Fund (IMRF), a defined benefit agent multiple -employer public employee retirement system, the Police Pension Plan which is a single -employer pension plan, and the Firefighters' Pension Plan which is also a single -employer pension plan. IMRF does issue a publicly available financial report that includes financial statements and required supplementary information for the plan as a whole, but not by individual employer. That report may be obtained on-line at www.imrf.org. The Police and Firefighters' Pension Plans also issue separate reports that may be obtained by writing the Village at 50 South Emerson, Mount Prospect, Illinois 60056. The benefits, benefit levels, employee contributions and employer contributions are governed by Illinois Compiled Statutes (ILCS) and can only be amended by the Illinois General Assembly. 83 96 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued The aggregate amounts recognized for the pension plans are: Net Pension Expenses/ Liabilities/ Deferred Deferred (Revenues) (Assets) Outflows Inflows IMRF Village $ (375,479) Library (67,651) Police Pension 1,347,936 (3,205,952) 2,936,947 8,467,916 (1,157,174) 1,060,077 3,056,455 45,236,365 11,605,208 11,258,083 Firefighters' Pension 2,033,429 40,010,412 9,102,003 8,044,131 2,938,235 80,883,651 24,704,235 30,826,585 Illinois Municipal Retirement Fund (IMRF) Plan Descriptions Plan Adfninistration. All employees (other than those covered by the Police and Firefighters' Pension Plan) hired in positions that meet or exceed the prescribed annual hourly standard must be enrolled in IMRF as participating members. The plan is accounted for on the economic resources measurement focus and the accrual basis of accounting. Employer and employee contributions are recognized when earned in the year that the contributions are required, benefits and refunds are recognized as an expense and liability when due and payable. Benefits Provided. IMRF has three benefit plans. The vast majority of IMRF members participate in the Regular Plan (RP). The Sheriff's Law Enforcement Personnel (SLEP) plan is for sheriffs, deputy sheriffs, and selected police chiefs. Counties could adopt the Elected County Official (ECO) plan for officials elected prior to August 8, 2011 (the ECO plan was closed to new participants after that date). IMRF provides two tiers of pension benefits. Employees hired before Januaiy 1, 2011, are eligible for Tier 1 benefits. Tier 1 employees are vested for pension benefits when they have at least eight years of qualifying service credit. Tier I employees who retire at age 55 (at reduced benefits) or after age 60 (at full benefits) with eight years of service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 1-2/3% of the final rate of earnings for the first 15 years of service credit, plus 2% for each year of service credit after 15 years to a maximum of 75% of their final rate of earnings. Final rate of earnings is the highest total earnings during any consecutive 48 months within the last 10 years of service, divided by 48. Under Tier 1, the pension is increased by 3% of the original amount on January I every year after retirement. 84 97 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLAN - Continued Illinois Municipal Retirement Fund (IMRF) - Continued Plan Descriptions - Continued Benefits Provided - Continued. Employees hired on or after January 1, 2011, are eligible for Tier 2 benefits. For Tier 2 employees, pension benefits vest after ten years of service. Participating employees who retire at age 62 (at reduced benefits) or after age 67 (at full benefits) with ten years of service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 1-2/3% of the final rate of earnings for the first 15 years of service credit, plus 2% for each year of service credit after 15 years to a maximum of 75% of their final rate of earnings. Final rate of earnings is the highest total earnings during any 96 consecutive months within the last 10 years of service, divided by 96. Under Tier 2, the pension is increased on January 1 every year after retirement, upon reaching age 67, by the lesser of: • 3% of the original pension amount, or • 1/2 of the increase in the Consumer Price Index of the original pension amount. Plan Membership. As of December 31, 2020, the measurement date, the following employees were covered by the benefit terms: Inactive Plan Members Currently Receiving Benefits 173 Inactive Plan Members Entitled to but not yet Receiving Benefits 181 Active Plan Members 247 Total 601 The IMRF data included in the table above includes membership of both the Village and the Library. Contributions. As set by statute, the Village's Regular Plan Members are required to contribute 4.50% of their annual covered salary. The statute requires employers to contribute the amount necessary, in addition to member contributions, to finance the retirement coverage of its own employees. For the year -ended December 31, 2021, the Village's and the Library's contribution was 11.00% of covered payroll. Net Pension (Asset). The Village's net pension (asset) was measured as of December 31, 2020. The total pension liability used to calculate the net pension (asset) was determined by an actuarial valuation as of that date. 85 98 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLAN - Continued Illinois Municipal Retirement Fund (IMRF) - Continued Plan Descriptions - Continued Actuarial Assumptions. The total pension liability was determined by an actuarial valuation performed, as of December 31, 2020, using the following actuarial methods and assumptions: Actuarial Cost Method Entry Age Normal Asset Valuation Method Fair Value Actuarial Assumptions Interest Rate 7.25% Salary Increases 2.85% to 13.75% Cost of Living Adjustments 2.25% Inflation 2.25% For nondisabled retirees, the Pub -2010, Amount -Weighted, below -median income, General, Retiree, Male (adjusted 106%) and Female (adjusted 105%) tables, and future mortality improvements projected using scale MP -2020. For disabled retirees, the Pub -2010, Amount -Weighted, below -median income, General, Disabled Retiree, Male and Female (both unadjusted) tables, and future mortality improvements projected using scale MP -2020. For active members, the Pub -2010, Amount -Weighted, below -median income, General, Employee, Male and Female (both unadjusted) tables, and future mortality improvements projected using scale MP -2020. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best -estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense, and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return to the target asset allocation percentage and adding expected inflation. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: 86 99 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLAN - Continued Illinois Municipal Retirement Fund (IMRF) - Continued Plan Descriptions - Continued Actuarial Assumptions - Continued. Long -Term Expected Real Asset Class Target Rate of Return Fixed Income 28.00% 1.30% Domestic Equities 37.00% 5.00% International Equities 18.00% 6.00% Real Estate 9.00% 6.20% Blended 7.00% 2.85% - 6.95% Cash and Cash Equivalents 1.00% 0.70% Discount Rate The discount rate used to measure the total pension liability was 7.25%, the same as the prior valuation. The projection of cash flows used to determine the discount rate assumed that member contributions will be made at the current contribution rate and that Village contributions will be made at rates equal to the difference between the actuarially determined contribution rates and the member rate. Based on those assumptions, the Fund's fiduciary net position was projected to be available to make all project future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all period of projected benefit payments to determine the total pension liability. Discount Rate Sensitivity The following is a sensitivity analysis of the net pension liability/(asset) to changes in the discount rate. The table below presents the net pension liability/(asset) of the Village and the Library calculated using the discount rate as well as what the Village's and Library's net pension liability/(asset) would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate: Current 1% Decrease Discount Rate 1% Increase (6.25%) (7.25%) (8.25%) Village $ 6,637,508 (3,205,952) (10,956,008) Library 2,395,778 (1,157,174) (3,954,520) Net Pension Liability/(Asset) 9,033,286 (4,363,126) (14,910,528) 87 100 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLAN - Continued Illinois Municipal Retirement Fund (IMRF) - Continued Changes in the Net Pension (Asset) Total Pension Liability Service Cost Interest Differences Between Expected and Actual Experience Change of Assumptions Benefit Payments, Including Refunds of Member Contributions Net Change in Total Pension Liability Total Pension Liability - Beginning Total Pension Liability - Ending Plan Fiduciary Net Position Contributions - Employer Contributions - Members Net Investment Income Benefit Payments, Including Refunds of Member Contributions Other (Net Transfer) Position Plan Net Position - Beginning Plan Net Position - Ending Village Library Totals $ 1,388,261 501,086 1,889,347 5,884,230 2,209,612 8,093,842 (1,664,398) (600,757) (2,265,155) (586,396) (211,657) (798,053) (4,100,551) (1,480,075) (5,580,626) 921,146 418,209 1,339,355 83,270,196 30,214,648 113,484,844 84,191,342 30,632,857 114,824,199 1,474,493 532,211 2,006,704 608,427 219,609 828,036 11,307,092 4,081,242 15,388,334 (4,100,551) (1,480,075) (5,580,626) (222,550) (80,328) (302,878) 9,066,911 3,272,659 12,339,570 78,330,383 28,517,372 106,847,755 87,397,294 31,790,031 119,187,325 Employer's Net Pension (Asset) (3,205,952) (1,157,174) (4,363,126) 101 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLAN - Continued Illinois Municipal Retirement Fund (IMRF) - Continued Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to Pensions For the year ended December 31, 2021, the Village recognized pension revenue of $375,479 and the Library recognized pension revenue of $67,651. At December 31, 2021, the Village and the Library reported deferred outflows or resources and deferred inflows of resources related to pensions from the following sources: Difference Between Expected and Actual Experience Change in Assumptions Net Difference Between Projected and Actual Earnings on Pension Plan Investments Total Expense to be Recognized in Future Periods Contributions Sub to Measurement Date Total Deferred Amounts Related to IMRF Village Library Deferred Deferred Deferred Deferred Outflows of (Inflows) of Outflows of Inflows of Resources Resources Resources Resources Totals $ 952,001 (1,203,167) 343,620 (434,278) (341,824) 467,334 (423,897) 168,682 (153,003) 59,116 — (6,840,852) — (2,469,174) (9,310,026) 1,419,335 (8,467,916) 512,302 (3,056,455) (9,592,734) 1,517,612 — 547,775 — 2,065,387 2,936,947 (8,467,916) 1,060,077 (3,056,455) (7,527,347) $1,517,612 for the Village and $547,775 for the Library reported as deferred outflows of resources related to pensions resulting from employer contributions subsequent to the measurement date and will be recognized as a reduction of the net pension liability in the reporting year ended December 31, 2022. Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense in future periods as follows: Fiscal Deferred (Inflows) of Resources Year Village Library Totals 2022 $ (1,529,398) 2023 (1,289,449) 2024 (3,090,469) 2025 (1,139,265) 2026 — Thereafter — (552,029) (2,081,427) (465,421) (1,754,870) (1,115,491) (4,205,960) (411,212) (1,550,477) Totals (7,048,581) (2,544,153) (9,592,734) 89 102 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLAN - Continued Police Pension Plan Plan Descriptions Plan Administration. The Police Pension Plan is a single -employer defined benefit pension plan that covers all sworn police personnel. The defined benefits and employee and minimum employer contribution levels are governed by Illinois Compiled Statutes (40 ILCS 5/3-1) and may be amended only by the Illinois legislature. The Village accounts for the Fund as a pension trust fund. The Fund is governed by a five -member pension board. Two members of the Board are appointed by the Village President, one member is elected by pension beneficiaries and two members are elected by active police employees. Plan Membership. At December 31, 2021, the measurement date, membership consisted of the following: Inactive Plan Members Currently Receiving Benefits 84 Inactive Plan Members Entitled to but not yet Receiving Benefits 8 Active Plan Members 83 Total 175 Benefits Provided. The following is a summary of the Police Pension Plan as provided for in Illinois State Statutes. The Police Pension Plan provides retirement benefits through two tiers of benefits as well as death and disability benefits. Covered employees hired before January 1, 2011 (Tier 1), attaining the age of 50 or older with 20 or more years of creditable service are entitled to receive an annual retirement benefit of/z of the salary attached to the rank held on the last day of service, or for one year prior to the last day, whichever is greater. The annual benefit shall be increased by 2.5 percent of such salary for each additional year of service over 20 years up to 30 years, to a maximum of 75 percent of such salary. Employees with at least eight years but less than 20 years of credited service may retire at or after age 60 and receive a reduced benefit. The monthly benefit of a police officer who retired with 20 or more years of service after January 1, 1977 shall be increased annually, following the first anniversary date of retirement and be paid upon reaching the age of at least 55 years, by 3 percent of the original pension and 3 percent compounded annually thereafter. 90 103 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued Police Pension Plan - Continued Plan Descriptions - Continued Benefits Provided - Continued. Covered employees hired on or after January 1, 2011 (Tier 2), attaining the age of 55 or older with 10 or more years of creditable service are entitled to receive an annual retirement benefit equal to the average monthly salary obtained by dividing the total salary of the police officer during the 48 consecutive months of service within the last 60 months of service in which the total salary was the highest by the number of months of service in that period. Police officer salary for the pension purposes is capped at $106,800, plus the lesser of/Z of the annual change in the Consumer Price Index or 3 percent compounded. The annual benefit shall be increased by 2.5 percent of such a salary for each additional year of service over 20 years up to 30 years to a maximum of 75 percent of such salary. Employees with at least 10 years may retire at or after age 50 and receive a reduced benefit (i.e., '/z percent for each month under 55). The monthly benefit of a Tier 2 police officer shall be increased annually at age 60 on the January Is' after the police officer retires, or the first anniversary of the pension starting date, whichever is later. Noncompounding increases occur annually, each January thereafter. The increase is the lesser of 3 percent or '/z of the change in the Consumer Price Index for the proceeding calendar year. Contributions. Covered employees are required to contribute 9.91% of their base salary to the Police Pension Plan. If an employee leaves covered employment with less than 20 years of service, accumulated employee contributions may be refunded without accumulated interest. The Village is required to contribute the remaining amounts necessary to finance the plan and the administrative costs as actuarially determined by an enrolled actuary. However, effective January 1, 2011, ILCS requires the Village to contribute a minimum amount annually calculated using the projected unit credit actuarial cost method that will result in the funding of 90% of the past service cost by the year 2040. For the year -ended December 31, 2021, the Village's contribution was 44.02% of covered payroll. Concentrations. At year end, the Pension Plan does not have any investments over 5 percent of net plan position available for retirement benefits (other than investments issued or explicitly guaranteed by the U.S. government and investments in mutual funds, external investment pools, and other pooled investments). 91 104 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued Police Pension Plan - Continued Actuarial Assumptions The total pension liability was determined by an actuarial valuation performed, as of December 31, 2021, using the following actuarial methods and assumptions: Actuarial Cost Method Entry Age Normal Asset Valuation Method Fair Value Actuarial Assumptions Interest Rate 7.00% Salary Increases 4.00% Adjustments Tier 1: 3.00%, Tier 2: 1.25% Inflation 2.50% Mortality rates for healthy individuals were based on the Pub -2010 Public Safety Mortality Table with with generational improvement scale MP -2021 applied from 2010. Mortality rates for disabled individuals were based the Pub -2010 Disabled Retiree Mortality Table with generational improvement scale MP -2021 applied from 2010. Discount Rate The discount rate used to measure the total pension liability was 7.00%, while the prior valuation was 7.25%. The projection of cash flows used to determine the discount rate assumed that member contributions will be made at the current contribution rate and that Village contributions will be made at rates equal to the difference between the actuarially determined contribution rates and the member rate. Based on those assumptions, the Fund's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all period of projected benefit payments to determine the total pension liability. 92 105 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued Police Pension Plan - Continued Discount Rate Sensitivity The following is a sensitive analysis of the net pension liability to changes in the discount rate. The table below presents the net pension liability of the Village calculated using the discount rate as well as what the Village's net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate: Current 1% Decrease Discount Rate 1% Increase (6.00%) (7.00%) (8.00%) Net Pension Liability S 66,012,720 45,236,365 28,410,341 Changes in the Net Pension Liability Balances at December 31, 2020 Changes for the Year: Service Cost Interest on the Total Pension Liability Changes of Benefit Terms Difference Between Expected and Actual Liability Changes of Assumptions Contributions - Employer Contributions - Employees Net Investment Income Benefit Payments, Including Refunds of Employee Contributions Other (Net Transfer) Net Changes Total 1,303,302 12,017,565 — Pension Plan Fiduciary Net Pension Liability Net Position Liability (A) (B) (A) - (B) $ 124,395,866 86,908,231 37,487,635 1,613,165 — 1,613,165 8,899,357 — 8,899,357 1,303,302 — 1,303,302 12,017,565 — 12,017,565 — 3,977,102 (3,977,102) — 887,126 (887,126) — 11,280,599 (11,280,599) (6,518,558) (6,518,558) - - (60,168) 60,168 17,314,831 9,566,101 7,748,730 Balances at December 31, 2021 141,710,697 96,474,332 45,236,365 93 106 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued Police Pension Plan - Continued Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to Pensions For the year ended December 31, 2021, the Village recognized pension expense of $1,347,936. At December 31, 2021, the Village reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Difference Between Expected and Actual Experience Change in Assumptions Net Difference Between Projected and Actual Earnings on Pension Plan Investments Total Deferred Amounts Related to Police Pension Deferred Deferred Outflows of Inflows of Resources Resources Totals $ 1,086,085 (2,253,321) (1,167,236) 10,519,123 (495,617) 10,023,506 (8,509,145) (8,509,145) 11,605,208 (11,258,083) 347,125 Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense in future periods as follows: Net Deferred Outflows/ Fiscal (Inflows) Year of Resources 2022 $ (343,256) 2023 (1,895,219) 2024 (343,074) 2025 708,532 2026 2,220,142 Thereafter — Total 347,125 107 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued Firefighters' Pension Plan Plan Descriptions Plan Administration. The Firefighters' Pension Plan is a single -employer defined benefit pension plan that covers all sworn firefighter personnel. The defined benefits and employee and minimum employer contribution levels are governed by Illinois Compiled Statutes (40 ILCS 5/4-1) and may be amended only by the Illinois legislature. The Village accounts for the Fund as a pension trust fund. The Fund is governed by a five -member pension board. Two members of the Board are appointed by the Village President, one member is elected by pension beneficiaries and two members are elected by active fire employees. Plan Membership. At December 31, 2021, the measurement date, membership consisted of the following: Inactive Plan Members Currently Receiving Benefits 90 Inactive Plan Members Entitled to but not yet Receiving Benefits 2 Active Plan Members 72 Total 164 Benefits Provided. The following is a summary of the Firefighters' Pension Plan as provided for in Illinois State Statutes. The Firefighters' Pension Plan provides retirement benefits through two tiers of benefits as well as death and disability benefits. Covered employees hired before January 1, 2011 (Tier 1), attaining the age of 50 or older with 20 or more years of creditable service are entitled to receive an annual retirement benefit of '/z of the salary attached to the rank held on the last day of service, or for one year prior to the last day, whichever is greater. The annual benefit shall be increased by 2.5 percent of such salary for each additional year of service over 20 years up to 30 years, to a maximum of 75 percent of such salary. Employees with at least eight years but less than 20 years of credited service may retire at or after age 60 and receive a reduced benefit. The monthly benefit of a firefighter who retired with 20 or more years of service after January 1, 1977 shall be increased annually, following the first anniversary date of retirement and be paid upon reaching the age of at least 55 years, by 3 percent of the original pension and 3 percent compounded annually thereafter. 95 108 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued Firefighters' Pension Plan - Continued Plan Descriptions - Continued Benefits Provided - Continued. Covered employees hired on or after January 1, 2011 (Tier 2), attaining the age of 55 or older with 10 or more years of creditable service are entitled to receive an annual retirement benefit equal to the average monthly salary obtained by dividing the total salary of the firefighter during the 48 consecutive months of service within the last 60 months of service in which the total salary was the highest by the number of months of service in that period. Firefighters' salary for the pension purposes is capped at $106,800, plus the lesser of/Z of the annual change in the Consumer Price Index or 3 percent compounded. The annual benefit shall be increased by 2.5 percent of such a salary for each additional year of service over 20 years up to 30 years to a maximum of 75 percent of such salary. Employees with at least 10 years may retire at or after age 50 and receive a reduced benefit (i.e., '/z percent for each month under 55). The monthly benefit of a Tier 2 firefighter shall be increased annually at age 60 on the January 1St after the firefighter retires, or the first anniversary of the pension starting date, whichever is later. Noncompounding increases occur annually, each January thereafter. The increase is the lesser of 3 percent of/z of the change in the Consumer Price Index for the proceeding calendar year. Contributions. Covered employees are required to contribute 9.455% of their base salary to the Firefighters' Pension Plan. If an employee leaves covered employment with less than 20 years of service, accumulated employee contributions may be refunded without accumulated interest. The Village is required to contribute the remaining amounts necessary to finance the plan and the administrative costs as actuarially determined by an enrolled actuary. However, effective January 1, 2011, ILCS requires the Village to contribute a minimum amount annually calculated using the projected unit credit actuarial cost method that will result in the funding of 90% of the past service cost by the year 2040. For the year -ended December 31, 2021, the Village's contribution was 43.72% of covered payroll. Concentrations. At year-end, the Fund has over 5 percent of net plan assets available for retirement benefits (other than investments issued or explicitly guaranteed by the U.S. government and investments in mutual funds, external investment pools, and other pooled investments) invested in Real Estate Annuity of $7,920,247. 96 109 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued Firefighters' Pension Plan - Continued Actuarial Assumptions The total pension liability was determined by an actuarial valuation performed, as of December 31, 2021, using the following actuarial methods and assumptions: Actuarial Cost Method Entry Age Normal Asset Valuation Method Fair Value Actuarial Assumptions Interest Rate 7.13% Salary Increases 4.00% Cost of Living Adjustments Tier 1: 3.00%, Tier 2: 1.25% Inflation 2.50% Mortality rates for healthy individuals were based on the Pub -2010 Public Safety Mortality Table with with generational improvement scale MP -2021 applied from 2010. Mortality rates for disabled individuals were based the Pub -2010 Disabled Retiree Mortality Table with generational improvement scale MP -2021 applied from 2010. Discount Rate The discount rate used to measure the total pension liability was 7.125%, while the prior valuation was 7.250%. The projection of cash flows used to determine the discount rate assumed that member contributions will be made at the current contribution rate and that Village contributions will be made at rates equal to the difference between the actuarially determined contribution rates and the member rate. Based on those assumptions, the Fund's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all period of projected benefit payments to determine the total pension liability. 97 110 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued Firefighters' Pension Plan - Continued Discount Rate Sensitivity The following is a sensitive analysis of the net pension liability to changes in the discount rate. The table below presents the net pension liability of the Village calculated using the discount rate as well as what the Village's net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate: Net Pension Liability Changes in the Net Pension Liability Balances at December 31, 2020 Current 1% Decrease Discount Rate 1% Increase (6.125%) (7.125%) (8.125%) $ 56,670,807 40,010,412 26,358,615 Changes for the Year: Service Cost Interest on the Total Pension Liability Changes of Benefit Terms Difference Between Expected and Actual Liability Changes of Assumptions Contributions - Employer Contributions - Employees Net Investment Income Benefit Payments, Including Refunds of Employee Contributions Other (Net Transfer) Net Changes Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (A) (B) (A) - (B) $ 113,009,154 80,459,469 32,549,685 1,623,510 — 1,623,510 8,064,784 — 8,064,784 1,328,239 — 1,328,239 7,790,489 — 7,790,489 — 3,651,864 (3,651,864) — 782,338 (782,338) — 7,021,828 (7,021,828) (6,788,536) (6,788,536) - - (109,735) 109,735 12,018,486 4,557,759 7,460,727 Balances at December 31, 2021 125,027,640 85,017,228 40,010,412 111 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued Firefighters' Pension Plan - Continued Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to Pensions For the year ended December 31, 2021, the Village recognized pension expense of $2,033,429. At December 31, 2021, the Village reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Difference Between Expected and Actual Experience Change in Assumptions Net Difference Between Projected and Actual Earnings on Pension Plan Investments Total Deferred Amounts Related to Firefighters' Pension Deferred Outflows of Resources Deferred Inflows of Resources $ 2,206,173 (1,179,856) 6,895,830 (682,554) Totals 1,026,317 6,213,276 - (6,181,721) (6,181,721) 9,102,003 (8,044,131) 1,057,872 Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense in future periods as follows: Net Deferred Outflows/ Fiscal (Inflows) Year of Resources 2022 $ (209,422) 2023 (1,382,604) 2024 (209,419) 2025 1,339,529 2026 1,519,788 Thereafter — Total 1,057,872 99 112 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 4 - OTHER INFORMATION - Continued OTHER POST -EMPLOYMENT BENEFITS General Information about the OPEB Plan Plan Description. The Village's defined benefit OPEB plan, Village of Mount Prospect Retiree Benefit Plan (RBP), provides OPEB for all permanent full-time general and public safety employees of the Village. RBP is a single -employer defined benefit OPEB plan administered by the Village. Article 11 of the State Compiled Statutes grants the authority to establish and amend the benefit terms and financing requirements to the Village Board. No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement 75. Benefits Provided. RBP provides pre and post -Medicare postretirement health insurance to retirees, their spouses, and dependents (enrolled at time of employee's retirement). Plan Membership. As of December 31, 2021, the measurement date, the following employees were covered by the benefit terms: Inactive Plan Members Currently Receiving Benefits 75 Inactive Plan Members Entitled to but not yet Receiving Benefits — Active Plan Members 299 Total The plan membership as noted above includes both the Village and the Library members. Total OPEB Liability 374 The Village's total OPEB liability was measured as of December 31, 2021, and was determined by an actuarial valuation as of that date. Actuarial Assumptions and Other Inputs. The total OPEB liability in the December 31, 2021 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: 100 113 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 4 - OTHER INFORMATION - Continued OTHER POST -EMPLOYMENT BENEFITS - Continued Total OPEB Liability - Continued Actuarial Assumptions and Other Inputs - Continued. Inflation 2.50% Salary Increases 3.25% Discount Rate 2.25% Healthcare Cost Trend Rates 7.50% decreasing to an ultimate rate of 4.50% Retirees' Share of Benefit -Related Costs 100% of projected health insurance premiums for retirees The discount rate was based on the S&P Municipal Bond 20 Year High -Grade Rate Index for tax exempt general obligation municipal bonds rated AA or better as of December 31, 2021. Mortality rates were based on the SOA Pub -2010 General Headcount Weighted Mortality Table fully generational using Scale MP -2020. Change in the Total OPEB Liability Total OPEB Liability Balance at December 31, 2020 S 14,857,280 Changes for the Year: Service Cost 882,943 Interest on the Total OPEB Liability 329,431 Changes of Benefit Terms — Difference Between Expected and Actual Experience (966,849) Changes of Assumptions or Other Inputs (283,951) Benefit Payments (404,187) Net Changes (442,613) Balance at December 31, 2021 14,414,667 101 114 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 4 - OTHER INFORMATION - Continued OTHER POST -EMPLOYMENT BENEFITS - Continued Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The discount rate used to measure the total pension liability was 2.25%, while the prior valuation used 2.12%. The following presents the total OPEB liability, calculated using the discount rate, as well as what the total OPEB liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher: Current 1% Decrease Discount Rate 1% Increase (1.25%) (2.25%) (3.25%) Total OPEB Liability $ 16,828,739 14,414,667 12,480,244 Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates The following presents the total OPEB liability, calculated using a variable Healthcare Trend Rate, as well as what the total OPEB liability would be if it were calculated using a Healthcare Trend Rate that is one percentage point lower or one percentage point higher: Healthcare Cost Trend 1% Decrease Rates 1% Increase (Varies) (Varies) (Varies) Total OPEB Liability $ 11,958,401 14,414,667 17,653,139 102 115 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2021 NOTE 4 - OTHER INFORMATION - Continued OTHER POST -EMPLOYMENT BENEFITS - Continued OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended December 31, 2021, the Village recognized OPEB expense of $1,098,587. At December 31, 2021, the Village reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows of Resources Difference Between Expected and Actual Experience $ — Change in Assumptions 3,386,615 Net Difference Between Projected and Actual Earnings — Total Deferred Amounts Related to OPEB Deferred Inflows of Resources Totals (2,683,913) (1,202,779) (2,683,913) 2,183,836 3,386,615 (3,886,692) (500,077) Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Net Deferred Outflows/ Fiscal (Inflows) Year of Resources 2022 $ (113,787) 2023 (113,787) 2024 (113,787) 2025 (113,787) 2026 (113,790) Thereafter 68,861 Totals (500,077) SUBSEQUENT EVENT On March 11, 2021, the American Rescue Plan Act of 2021 was signed into law. This act provides $350 billion in funding for local governments. The Village has been allocated $7,027,870 to be received in two installments. On May 19, 2021 the Village received their first installment of $3,513,935. As of the date of these financial statements, the Village has not received their second installment. 103 116 REQUIRED SUPPLEMENTARY INFORMATION Required supplementary information includes financial information and disclosures that are required by the GASB but are not considered a part of the basic financial statements. Such information includes: • Schedule Employer Contributions Illinois Municipal Retirement Fund Police Pension Fund Firefighters' Pension Fund • Schedule of Changes in the Employer's Net Pension Liability/(Asset) Illinois Municipal Retirement Fund Police Pension Fund Firefighters' Pension Fund • Schedule of Investment Returns Police Pension Fund Firefighters' Pension Fund • Schedule of Changes in the Employer's Total OPEB Liability Retiree Benefit Plan • Budgetary Comparison Schedules General Fund Prospect/Main TIF - Special Revenue Fund Notes to the Required Supplementary Information Budgetary information - Budgets are adopted on a basis consistent with generally accepted accounting principles. 104 117 VILLAGE OF MOUNT PROSPECT, ILLINOIS Illinois Municipal Retirement Fund Schedule of Employer Contributions December 31, 2021 Fiscal Year Actuarially Determined Contribution Contributions in Relation to the Actuarially Determined Contribution Contribution Excess/ (Deficiency) Covered Payroll Contributions as a Percentage of Covered Payroll 2015 Totals $ 1,863,012 $ 1,863,012 $ — $ 16,256,645 11.46% 2016 Totals 1,968,206 2,031,571 63,365 16,567,389 12.26% 2017 Totals 1,900,189 1,941,668 41,479 16,965,974 11.44% 2018 Totals 1,930,380 2,032,727 102,347 17,940,334 11.33% 2019 Totals 1,600,357 1,677,888 77,531 18,248,083 9.19% 2020 Totals 2,006,703 2,006,703 — 17,965,116 11.17% 2021 Village 1,517,223 1,533,112 15,889 13,895,475 11.03% Library 547,775 547,775 — 51015,507 10.92% Totals 2,064,998 2,080,887 15,889 18,910,982 11.00% Notes to the Required Supplementary Information: Actuarial Cost Method Amortization Method Remaining Amortization Period Asset Valuation Method Inflation Salary Increases Investment Rate of Return Retirement Age Mortality Entry Age Normal Level % Pay (Closed) 23 Years 5 -Year Smoothed Fair Value 2.50% 3.35% - 14.25% 7.25% See the Notes to the Financial Statements IMRF specific mortality table was used with fully generational projection scale MP -2017 (base year 2015). Note: This schedule is intended to show information for ten years. Information for additional years will be displayed as it becomes available. 105 118 VILLAGE OF MOUNT PROSPECT, ILLINOIS Police Pension Fund Schedule of Employer Contributions December 31, 2021 Fiscal Year Actuarially Determined Contribution Contributions in Relation to the Actuarially Determined Contribution Contribution Excess/ (Deficiency) Covered Payroll Contributions as a Percentage of Covered Payroll 2012 $ 2,484,859 $ 2,511,349 $ 26,490 $ 7,871,917 31.90% 2013 2,631,811 2,631,038 (773) 8,121,622 32.40% 2014 2,922,979 2,924,226 1,247 7,848,795 37.26% 2015 2,909,868 2,918,395 8,527 8,049,995 36.25% 2016 3,204,363 3,232,887 28,524 8,276,985 39.06% 2017 3,817,579 3,747,825 (69,754) 8,354,290 44.86% 2018 3,601,216 3,608,602 7,386 8,526,976 42.32% 2019 3,607,934 3,582,409 (25,525) 8,505,172 42.12% 2020 3,864,556 3,855,754 (8,802) 8,791,984 43.86% 2021 3,985,302 3,977,102 (8,200) 9,034,880 44.02% Notes to the Required Supplementary Information: Actuarial Cost Method Entry Age Normal Amortization Method Level % Pay (Closed) Remaining Amortization Period 20 Years Asset Valuation Method 5 -Year Smoothed Fair Value Inflation 2.50% Salary Increases 4.00% Investment Rate of Return 7.25% Retirement Age See the Notes to the Financial Statements Mortality RP -2014 Mortality Table with a Blue Collar Adjustment, with improvement Scale MP -2019 applied generationally from 2013. 106 119 VILLAGE OF MOUNT PROSPECT, ILLINOIS Firefighters' Pension Fund Schedule of Employer Contributions December 31, 2021 Fiscal Year Actuarially Determined Contribution Contributions in Relation to the Actuarially Determined Contribution Contribution Excess/ (Deficiency) Covered Payroll Contributions as a Percentage of Covered Payroll 2012 $ 2,224,122 $ 2,260,834 $ 36,712 $ 6,150,974 36.76% 2013 2,323,609 2,371,347 47,738 6,436,911 36.84% 2014 2,468,554 2,466,165 (2,389) 6,495,510 37.97% 2015 2,526,101 2,532,316 6,215 6,441,588 39.31% 2016 2,589,599 2,806,983 217,384 6,981,704 40.20% 2017 3,206,186 3,396,834 190,648 7,284,199 46.63% 2018 3,320,940 3,332,773 11,833 7,519,070 44.32% 2019 3,375,839 3,363,390 (12,449) 7,854,176 42.82% 2020 3,488,379 3,494,838 6,459 8,024,566 43.55% 2021 3,649,130 3,651,864 2,734 8,353,578 43.72% Notes to the Required Supplementary Information: Actuarial Cost Method Entry Age Normal Amortization Method Level % Pay (Closed) Remaining Amortization Period 20 Years Asset Valuation Method 5 -Year Smoothed Fair Value Inflation 2.50% Salary Increases 4.00% Investment Rate of Return 7.25% Retirement Age See the Notes to the Financial Statements Mortality RP -2014 Mortality Table with a blue collar adjustment, with improvement scale MP -2019 applied generationally from 2013. 107 120 VILLAGE OF MOUNT PROSPECT, ILLINOIS Illinois Municipal Retirement Fund Schedule of Changes in the Employer's Net Pension Liability/(Asset) December 31, 2021 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability Covered Payroll 91.93% $ 16,258,793 87.23% 16,256,645 Employer's Net Pension Liability/(Asset) as a Percentage of Covered Payroll 43.84% 72.26% Note: This schedule is intended to show information for ten years. Information for additional years will be displayed as it becomes available. Changes of Assumptions. Changes in assumptions related to the discount rate were made in 2014 through 2020. Changes in assumptions related to the demographics were made in 2014 and 2017. 108 121 12/31/2014 12/31/2015 Total Total Total Pension Liability Service Cost $ 1,830,586 1,810,785 Interest 5,880,604 6,548,331 Changes in Benefit Terms — — Differences Between Expected and Actual Experience 1,583,453 (1,203,005) Change of Assumptions 3,126,293 113,021 Benefit Payments, Including Refunds of Member Contributions (3,179,063) (3,603,793) Net Change in Total Pension Liability 9,241,873 3,665,339 Total Pension Liability - Beginning 79,082,287 88,324,160 Total Pension Liability - Ending 88,324,160 91,989,499 Plan Fiduciary Net Position Contributions - Employer $ 1,908,296 1,863,011 Contributions - Members 757,565 731,552 Net Investment Income 4,666,652 403,461 Benefit Payments, Including Refunds of Member Contributions (3,179,063) (3,603,793) Other (Net Transfer) 284,199 (348,936) Net Change in Plan Fiduciary Net Position 4,437,649 (954,705) Plan Net Position - Beginning 76,759,094 81,196,743 Plan Net Position - Ending 81,196,743 80,242,038 Employer's Net Pension Liability/(Asset) $ 7,127,417 11,747,461 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability Covered Payroll 91.93% $ 16,258,793 87.23% 16,256,645 Employer's Net Pension Liability/(Asset) as a Percentage of Covered Payroll 43.84% 72.26% Note: This schedule is intended to show information for ten years. Information for additional years will be displayed as it becomes available. Changes of Assumptions. Changes in assumptions related to the discount rate were made in 2014 through 2020. Changes in assumptions related to the demographics were made in 2014 and 2017. 108 121 12/31/2016 12/31/2017 12/31/2018 12/31/2019 12/31/2020 Total Total Total Total Village Library Totals 1,768,746 1,811,298 1,690,492 1,858,283 1,388,261 501,086 1,889,347 6,803,558 7,087,425 7,223,810 7,700,258 5,884,230 2,209,612 8,093,842 (756,505) 570,864 3,043,104 1,402,150 (1,664,398) (600,757) (2,265,155) (232,520) (3,034,659) 3,019,891 — (586,396) (211,657) (798,053) (3,834,437) (4,289,989) (4,822,107) (5,514,317) (4,100,551) (1,480,075) (5,580,626) 3,748,842 91,989,499 2,144,939 95,738,341 10,155,190 97,883,280 5,446,374 108,038,470 921,146 83,270,196 418,209 30,214,648 1,339,355 113,484,844 95,738,341 97,883,280 108,038,470 113,484,844 84,191,342 30,632,857 114,824,199 2,031,571 1,941,668 2,032,727 1,677,888 1,474,493 532,211 2,006,704 745,535 766,547 1,104,133 879,607 608,427 219,609 828,036 5,536,369 14,755,335 (5,230,039) 17,276,295 11,307,092 4,081,242 15,388,334 (3,834,437) (4,289,989) (4,822,107) (5,514,317) (4,100,551) (1,480,075) (5,580,626) 403,724 (1,351,715) 1,969,030 527,892 (222,550) (80,328) (302,878) 4,882,762 11,821,846 (4,946,256) 14,847,365 9,066,911 3,272,659 12,339,570 80,242,038 85,124,800 96,946,646 92,000,390 78,330,383 28,517,372 106,847,755 85,124,800 96,946,646 92,000,390 106,847,755 87,397,294 31,790,031 119,187,325 10,613,541 936,634 16,038,080 6,637,089 (3,205,952) (1,157,174) (4,363,126) 88.91% 99.04% 85.16% 94.15% 103.81% 103.78% 103.80% 16,567,389 16,965,974 17,940,334 18,248,083 13,200,468 4,764,648 17,965,116 64.06% 5.52% 89.40% 36.37% (24.29%) (24.29%) (24.29%) 109 122 VILLAGE OF MOUNT PROSPECT, ILLINOIS Police Pension Fund Schedule of Changes in the Employer's Net Pension Liability December 31, 2021 Total Pension Liability Service Cost Interest Changes in Benefit Terms Differences Between Expected and Actual Experience Change of Assumptions Benefit Payments, Including Refunds of Member Contributions Net Change in Total Pension Liability Total Pension Liability - Beginning Total Pension Liability - Ending Plan Fiduciary Net Position Contributions - Employer Contributions - Members Net Investment Income Benefit Payments, Including Refunds of Member Contributions Administrative Expenses Net Change in Plan Fiduciary Net Position Plan Net Position - Beginning Plan Net Position - Ending Employer's Net Pension Liability Plan Fiduciary Net Position as a Percentage of the Total Pension Liability Covered Payroll 12/31/2014 12/31/2015 $ 1,890,407 1,777,310 6,479,504 7,210,826 860,183 95,650 4,844,398 7,268,193 (4,117,120) (4,529,962) 9,957,372 11,822,017 88,451,950 98,409,322 6-9 98,409,322 110,231,339 2,924,226 851,363 3,845,862 2,918,395 795,827 545,802 (4,117,120) (4,529,962) (60,382) (49,947) 3,443,949 (319,885) 55,375,976 58,819,925 58,819,925 58,500,040 $ 39,589,397 51,731,299 59.77% 7,848,795 53.07% 8,049,995 Employer's Net Pension Liability as a Percentage of Covered Payroll 504.40% 642.63% Note: This schedule is intended to show information for ten years. Information for additional years will be displayed as it becomes available. 110 123 12/31/2016 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021 1,732,924 1,557,284 1,575,461 1,576,407 1,571,647 1,613,165 8,221,483 7,951,856 8,195,228 8,574,834 8,826,306 8,899,357 - - - 202,152 - - (5,201,074) (1,650,048) (208,550) (439,430) (2,533,619) 1,303,302 29,971 385,618 1,320,658 (343,513) (485,790) 12,017,565 (4,688,978) (4,404,364) (5,407,697) (5,887,879) (6,306,360) (6,518,558) 94,326 3,840,346 5,475,100 3,682,571 1,072,184 17,314,831 110,231,339 110,325,665 114,166,011 119,641,111 123,323,682 124,395,866 110,325,665 114,166,011 119,641,111 123,323,682 124,395,866 141,710,697 3,232,887 3,747,825 3,608,602 3,582,499 3,855,754 3,977,102 815,684 830,240 838,893 860,265 860,062 887,126 4,161,658 8,967,014 (3,697,156) 13,440,246 10,224,907 11,280,599 (4,688,978) (4,404,364) (5,407,697) (5,887,879) (6,306,360) (6,518,558) (44,605) (48,339) (37,596) (35,695) (59,676) (60,168) 3,476,646 9,092,376 (4,694,954) 11,959,436 8,574,687 9,566,101 58,500,040 61,976,686 71,069,062 66,374,108 78,333,544 86,908,231 61,976,686 71,069,062 66,374,108 78,333,544 86,908,231 96,474,332 48,348,979 43,096,949 53,267,003 44,990,138 37,487,635 45,236,365 56.18% 62.25% 55.48% 63.52% 69.86% 68.08% 8,276,985 8,354,290 8,526,976 8,505,172 8,791,984 9,034,880 584.14% 515.87% 624.69% 528.97% 426.38% 500.69% 111 124 VILLAGE OF MOUNT PROSPECT, ILLINOIS Firefighters' Pension Fund Schedule of Changes in the Employer's Net Pension Liability December 31, 2021 Total Pension Liability Service Cost Interest Changes in Benefit Terms Differences Between Expected and Actual Experience Change of Assumptions Benefit Payments, Including Refunds of Member Contributions Net Change in Total Pension Liability Total Pension Liability - Beginning Total Pension Liability - Ending Plan Fiduciary Net Position Contributions - Employer Contributions - Members Net Investment Income Benefit Payments, Including Refunds of Member Contributions Administrative Expenses Net Change in Plan Fiduciary Net Position Plan Net Position - Beginning Plan Net Position - Ending Employer's Net Pension Liability Plan Fiduciary Net Position as a Percentage of the Total Pension Liability Covered Payroll 12/31/2014 12/31/2015 $ 1,673,836 1,515,101 5,780,241 6,270,507 225,575 1,603,162 3,234,155 7,648,623 (4,158,988) (4,594,876) 6,754,819 12,442,517 79,149,378 85,904,197 85,904,197 98,346,714 2,466,165 644,384 3,963,252 2,532,317 606,932 1,806,126 (4,158,988) (4,594,876) (62,889) (62,136) 2,851,924 288,363 53,716,415 56,568,339 56,568,339 56,856,702 $ 29,335,858 41,490,012 65.85% 6,495,510 57.81% 6,441,588 Employer's Net Pension Liability as a Percentage of Covered Payroll 451.63% 644.10% Note: This schedule is intended to show information for ten years. Information for additional years will be displayed as it becomes available. 112 125 12/31/2016 12/31/2017 12/31/2018 12/3 1 /2019 12/31/2020 12/31/2021 1,429,810 1,426,033 1,427,248 1,479,272 1,581,259 1,623,510 7,296,444 7,228,968 7,510,621 7,617,301 7,829,880 8,064,784 - - - 403,544 - - (1,491,027) 1,470,077 (2,255,993) 64,710 970,396 1,328,239 396,832 (572,774) 809,820 (346,430) (518,533) 7,790,489 (4,981,207) (5,427,385) (5,909,909) (6,234,640) (6,541,877) (6,788,536) 2,650,852 4,124,919 1,581,787 2,983,757 3,321,125 12,018,486 98,346,714 100,997,566 105,122,485 106,704,272 109,688,029 113,009,154 100,997,566 105,122,485 106,704,272 109,688,029 113,009,154 125,027,640 2,806,983 3,396,834 3,332,773 3,363,390 3,494,838 3,651,864 668,070 678,476 688,000 793,037 758,838 782,338 3,049,538 9,323,369 (1,914,014) 10,947,884 11,556,727 7,021,828 (4,981,207) (5,427,385) (5,909,909) (6,234,640) (6,541,877) (6,788,536) (55,257) (50,783) (63,660) (40,260) (36,998) (109,735) 1,488,127 7,920,511 (3,866,810) 8,829,411 9,231,528 4,557,759 56,856,702 58,344,829 66,265,340 62,398,530 71,227,941 80,459,469 58,344,829 66,265,340 62,398,530 71,227,941 80,459,469 85,017,228 42,652,737 38,857,145 44,305,742 38,460,088 32,549,685 40,010,412 57.77% 63.04% 58.48% 64.94% 71.20% 68.00% 6,981,704 7,284,199 7,519,070 7,854,176 8,024,566 8,353,578 610.92% 533.44% 589.24% 489.68% 405.63% 478.96% 113 126 VILLAGE OF MOUNT PROSPECT, ILLINOIS Police Pension Fund Schedule of Investment Returns December 31, 2021 Annual Money - Weighted Rate of Return, Net Fiscal of Investment Year Expense 2014 6.92% 2015 0.92% 2016 7.15% 2017 14.29% 2018 (5.21°/x) 2019 20.29% 2020 13.20% 2021 15.66% Note: This schedule is intended to show information for ten years. Information for additional years will be displayed as it becomes available. 114 127 VILLAGE OF MOUNT PROSPECT, ILLINOIS Firefighters' Pension Fund Schedule of Investment Returns December 31, 2021 Annual Money - Weighted Rate of Return, Net Fiscal of Investment Year Expense 2014 7.60% 2015 3.38% 2016 5.58% 2017 16.49% 2018 (2.80°/x) 2019 16.52% 2020 16.49% 2021 8.87% Note: This schedule is intended to show information for ten years. Information for additional years will be displayed as it becomes available. 115 128 VILLAGE OF MOUNT PROSPECT, ILLINOIS Retiree Benefit Plan Schedule of Changes in the Employer's Total OPEB Liability December 31, 2021 Total OPEB Liability Service Cost Interest Changes in Benefit Terms Differences Between Expected and Actual Experience Change of Assumptions or Other Inputs Benefit Payments Net Change in Total OPEB Liability Total OPEB Liability - Beginning Total OPEB Liability - Ending Covered -Employee Payroll Total OPEB Liability as a Percentage of Covered -Employee Payroll 12/31/2018 $ 523,084 463,660 12/31/2019 457,933 457,768 12/31/2020 12/31/2021 560,011 882,943 407,957 329,431 (1,152,702) (530,505) (1,053,887) (966,849) (1,704,999) 1,326,575 3,217,155 (283,951) (387,384) (422,580) (452,279) (404,187) (2,258,341) 1,289,191 2,678,957 (442,613) 13,147,473 10,889,132 12,178,323 14,857,280 10,889,132 12,178,323 14,857,280 14,414,667 S 26,110,072 26,958,649 41.70% 45.17% 27,836,531 53.37% 28,741,218 50.15% Notes: This schedule is intended to show information for ten years. Information for additional years will be displayed as it becomes available. No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement 75. Changes of Assumptions. Changes in assumptions related to the discount rate were made in 2018 through 2021. 116 129 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2021 Budget Original Final Actual Revenues Taxes $ 23,385,087 23,385,087 23,607,673 Licenses and Permits 2,377,500 2,377,500 2,462,218 Intergovernmental 30,321,790 41,740,725 39,100,373 Charges for Services 1,892,600 2,692,600 3,153,582 Fines and Forfeitures 292,000 292,000 445,604 Interest 181,600 181,600 (3,025) Miscellaneous 409,200 409,200 296,266 Total Revenues 58,859,777 71,078,712 69,062,691 Expenditures General Government 7,298,613 7,298,613 6,441,083 Public Safety 38,722,030 39,258,235 38,734,462 Highways and Streets 9,659,400 10,585,305 9,370,338 Health 158,345 158,345 166,502 Welfare 1,536,648 1,536,180 1,422,835 Culture and Recreation 424,366 424,366 306,890 Total Expenditures 57,799,402 59,261,044 56,442,110 Excess (Deficiency) of Revenues Over (Under) Expenditures 1,060,375 11,817,668 12,620,581 Other Financing Sources (Uses) Disposal of Capital Assets 360 Transfers Out (3,000,000) (4,000,000) (4,000,000) (3,000,000) (4,000,000) (3,999,640) Net Change in Fund Balance (1,939,625) 7,817,668 8,620,941 Fund Balance - Beginning 26,174,371 Fund Balance - Ending 34,795,312 117 130 VILLAGE OF MOUNT PROSPECT, ILLINOIS Prospect and Main TIF - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2021 Revenues Taxes Property Taxes Interest Total Revenues Expenditures General Government Other Employee Costs Contractual Services Commodities and Supplies Capital Outlay Infrastructure Other Debt Service Principal Retirement Interest and Fiscal Charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources Disposal of Capital Assets Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending Budget Original Final Actual $ 1,348,000 1,348,000 1,483,537 5,000 5,000 131 1,353,000 1,353,000 1,483,668 1,500 1,500 600 80,000 80,000 164,443 1,500 1,500 — 100,000 275,990 — 704,000 704,000 224,812 320,000 699,338 320,000 699,338 320,000 699,188 1,906,338 2,082,328 1,409,043 (553,338) (729,328) 74,625 2,800,000 2,800,000 295,165 2,246,662 2,070,672 369,790 25,991 395,781 118 131 OTHER SUPPLEMENTARY INFORMATION Other supplementary information includes financial statements and schedules not required by the GASB, nor a part of the basic financial statements, but are presented for purposes of additional analysis. Such statements and schedules include: • Budgetary Comparison Schedules - Major Governmental Funds • Combining Statements - Nonmajor Governmental Funds • Budgetary Comparison Schedules - Nonmajor Governmental Funds • Budgetary Comparison Schedules - Enterprise Funds • Combining Statements - Internal Service Funds • Budgetary Comparison Schedules - Internal Service Funds • Combining Statements - Pension Trust Funds • Consolidated Year -End Financial Report 119 132 GOVERNMENTAL FUNDS 120 133 MAJOR GOVERNMENTAL FUNDS GENERAL FUND General Fund: The General Fund is used to account for all financial resources except those required to be accounted for in another fund. SPECIAL REVENUE FUND Prospect and Main TIF Fund: The Prospect/Main TIF Fund is used to account for the resources to acquire property and construct certain improvements in the Prospect/Main Tax Incremental Financing District. Financing is being provided by incremental property taxes, general obligation bond proceeds, and investment income. DEBT SERVICE FUND Debt Service Fund: The Debt Service Fund is used to account for the accumulation of funds for the periodic payment of principal and interest on general long-term debt. CAPITAL PROJECTS FUND Police and Fire Building Construction Fund: The Police and Fire Building Construction Fund is used to account for the resources to construct the police and fire building. 121 134 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Revenues - Budget and Actual For the Fiscal Year Ended December 31, 2021 Taxes Property Taxes - General Property Taxes - Police Pension Property Taxes - Firefighters' Pension Road and Bridge Property Tax Auto Rental Tax Food and Beverage Tax Real Estate Transfer Tax Hotel/Motel Tax Telecommunications Tax Home Rule Sales Tax Gas Utility Tax Electric Utility Tax Total Taxes Licenses and Permits Liquor Licenses Business Licenses Contractor Licenses Alarm Licenses Elevator Licenses Building Permit Fees Reinspection Fees Gaming License Fees Vacant Structure Registration Fees Truck Rental Fees Utility Permit Fees ZBA Hearing Fees Village Impact Fees False Alarm Fees Landlord/Tenant Fees Cable TV Franchise Fees Total Licenses and Permits 122 Budget Original Final Actual S 9,254,152 9,254,152 9,131,948 3,767,056 3,767,056 3,740,356 3,375,879 3,375,879 3,354,313 130,000 130,000 115,889 16,500 16,500 34,924 820,000 820,000 1,080,890 1,125,000 1,125,000 1,471,917 220,000 220,000 161,448 1,600,000 1,600,000 1,322,482 1,325,000 1,325,000 1,462,117 566,500 566,500 628,031 1,185,000 1,185,000 1,103,358 23,385,087 23,385,087 23,607,673 200,000 200,000 173,865 148,000 148,000 145,079 100,000 100,000 138,400 47,000 47,000 45,188 28,000 28,000 24,480 600,000 600,000 739,596 20,000 20,000 4,225 43,000 43,000 76,850 5,000 5,000 3,000 5,000 5,000 4,815 5,000 5,000 28,250 12,000 12,000 10,500 50,000 50,000 18,798 7,500 7,500 5,600 341,000 341,000 303,402 766,000 766,000 740,170 2,377,500 2,377,500 2,462,218 135 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Revenues - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2021 Intergovernmental State Sales Tax State Income Tax State Use Tax Charitable Games Tax Cannabis Education Fund Municipal Cannabis Tax Replacement Taxes Replacement Taxes - Road and Bridge Grant - Body Armor Grant - Other Total Intergovernmental Charges for Services Maintenance of State Highways Ambulance Transport Fees Forest River Rural FPD Cable Programming Fees Other Programs Special Detail Revenue Police Training Revenue Fire Training Revenue Lease Payments - Cell Towers General Store Lease Total Charges for Services Fines and Forfeitures Fines - Parking Fines - Local Ordinances Fines - Code Enforcement Fines - Circuit Court Fines - Parental Responsibility Fines - Permit Penalties Forfeited Escrow Funds Total Fines and Forfeitures Budget Original Final Actual $ 22,500,000 28,000,000 28,638,555 5,254,200 7,154,200 7,175,489 1,814,590 2,194,590 2,203,936 3,500 3,500 1,315 43,300 43,300 77,487 60,000 60,000 19,238 384,200 384,200 709,233 6,000 6,000 13,834 6,000 6,000 7,474 310,000 3,948,935 253,812 30,321,790 41,740,725 39,100,373 80,000 80,000 167,428 1,500,000 2,300,000 2,705,354 45,000 45,000 74,647 27,000 27,000 - 37,000 37,000 4,250 60,000 60,000 17,855 1,000 1,000 - 13,000 13,000 14,903 110,000 110,000 147,911 19,600 19,600 21,234 1,892,600 2,692,600 3,153,582 175,000 175,000 179,429 1,000 1,000 300 5,000 5,000 49,150 75,000 75,000 163,525 1,000 1,000 150 12,000 35,000 35,000 41,050 292,000 292,000 445,604 123 136 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Revenues - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2021 Interest Investment Income Interest - Escrow Funds Total Interest Miscellaneous Reimburse - H/S Youth Officer Reimburse - Mount Prospect Library Shared Cost - Sidewalk Shared Cost - Tree Replacement Other Reimbursements Human Services Revenue Fire and Police Reports Animal Release Fees Subpoena Fees Other Revenue Total Miscellaneous Total Revenues Budget Original Final Actual $ 176,600 176,600 (3,221) 5,000 5,000 196 181,600 181,600 (3,025) 214,000 214,000 103,048 29,000 29,000 28,874 20,000 20,000 13,725 5,000 5,000 - 85,000 85,000 60,697 11,500 11,500 (275) 5,000 5,000 5,415 100 100 175 100 100 150 39,500 39,500 84,457 409,200 409,200 296,266 58,859,777 71,078,712 69,062,691 124 137 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Expenditures - Budget and Actual For the Fiscal Year Ended December 31, 2021 General Government Public Representation - Administration Village Administration Finance Department Community Development - Administration Benefit Payments Total General Government Public Safety Community Development - Code Enforcement Police Department Fire Department Total Public Safety Highways and Streets Public Works Department Health Community Development - Health Welfare Human Services Department Community Development - Housing Total Welfare Culture and Recreation Public Representation - Community and Civic Services Total Expenditures Budget Original Final 162,551 4,318,263 1,634,351 1,176,970 6,478 166,251 4,314,563 1,634,351 1,176,970 6,478 Actual 166,216 3,689,825 1,515,447 1,063,237 6,358 7,298,613 7,298,613 6,441,083 1,137,920 1,137,920 1,094,230 20,356,573 20,327,573 20,023,450 17,227,537 17,792,742 17,616,782 38,722,030 39,258,235 38,734,462 9,659,400 10,585,305 9,370,338 158,345 158,345 166,502 1,222,808 1,222,340 1,175,559 313,840 313,840 247,276 1,536,648 1,536,180 1,422,835 424,366 424,366 306,890 57,799,402 59,261,044 56,442,110 125 138 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual For the Fiscal Year Ended December 31, 2021 General Government Public Representation - Administration Mayor and Board of Trustees Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Total Mayor and Board of Trustees Village Administration Village Manager's Office Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Office and Other Equipment Insurance Other Expenditures Total Village Manager's Office Legal Services Contractual Services Human Resources Personal Services Employee Benefits Other Employee Costs Contractual Services Commodities and Supplies Total Human Resources Budget Original Final Actual $ 25,006 25,006 25,045 1,917 1,917 1,916 7,000 7,000 6,561 123,428 127,128 127,427 5,200 5,200 5,267 162,551 166,251 166,216 616,222 616,222 584,909 226,685 226,685 225,465 28,086 28,086 11,512 68,895 65,195 42,824 4,300 4,300 2,834 7,579 7,579 6,728 235 235 216 19,800 19,800 19,800 143,697 143,697 - 1,115,499 1,111,799 894,288 634,500 634,500 468,616 224,615 224,615 229,681 235,374 235,374 272,836 61,860 61,860 34,471 9,100 9,100 9,367 1,300 1,300 1,638 532,249 532,249 547,993 126 139 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2021 General Government - Continued Village Administration - Continued Information Technology Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Office and Other Equipment Total Information Technology Communications Personal Services Employee Benefits Other Employee Costs Contractual Services Commodities and Supplies Total Communications Television Services Personal Services Employee Benefits Contractual Services Commodities and Supplies Office and Other Equipment Total Television Services Community Engagement Other Employee Costs Contractual Services Utilities Commodities and Supplies Total Community Engagement Budget Original Final Actual $ 504,624 504,624 443,341 205,769 205,769 174,432 5,000 5,000 300 531,915 531,915 480,333 35,600 35,600 32,091 500 500 475 16,000 16,000 12,959 1,299,408 1,299,408 1,143,931 92,136 92,136 93,730 47,620 47,620 46,004 3,100 3,100 75 94,200 94,200 83,212 1,800 1,800 - 238,856 238,856 223,021 74,279 74,279 65,952 31,631 31,631 30,211 36,823 36,823 20,917 4,500 4,500 3,418 15,000 15,000 7,697 162,233 162,233 128,195 5,000 5,000 400 143,000 143,000 105,413 920 920 939 1,000 1,000 171 149,920 149,920 106,923 127 140 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2021 General Government - Continued Village Administration - Continued Village Clerk's Office Administration and Support Personal Services Employee Benefits Other Employee Costs Contractual Services Commodities and Supplies Total Village Clerk's Office Total Village Administration Finance Department Administration and Support Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Office and Other Equipment Insurance Total Administration and Support Accounting Personal Services Employee Benefits Other Employee Costs Contractual Services Commodities and Supplies Total Accounting Insurance Budget Original Final Actual $ 105,593 105,593 109,685 52,255 52,255 47,430 1,815 1,815 369 24,935 24,935 18,462 1,000 1,000 912 185,598 185,598 176,858 4,318,263 4,314,563 3,689,825 216,988 216,988 219,762 80,815 80,815 94,023 29,900 29,900 7,028 243,090 243,090 210,539 2,500 2,500 1,839 18,150 18,150 5,061 80,000 80,000 57,616 12,503 12,503 12,503 683,946 683,946 608,371 365,009 365,009 347,656 116,106 116,106 114,406 4,000 4,000 1,260 2,500 2,500 958 9,500 9,500 3,220 497,115 497,115 467,500 35,000 35,000 37,956 128 141 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2021 General Government - Continued Finance Department - Continued Customer Service Personal Services Employee Benefits Other Employee Costs Contractual Services Commodities and Supplies Total Customer Service Total Finance Department Community Development - Administration Administration and Support - Economic Development Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Insurance Budget Original Final Actual $ 251,951 251,951 250,225 75,099 75,099 73,678 2,345 2,345 35 72,370 72,370 66,634 16,525 16,525 11,048 418,290 418,290 401,620 1,634,351 1,634,351 1,515,447 126,744 126,744 127,534 42,814 42,814 41,898 4,945 4,945 1,261 28,091 28,091 28,789 1,452 1,452 1,827 1,149 1,149 71 5,261 5,261 5,261 Total Administration and Support - Economic Development 210,456 210,456 206,641 Planning and Zoning Personal Services Employee Benefits Other Employee Costs Contractual Services Commodities and Supplies Total Planning and Zoning 204,636 204,636 197,220 59,257 59,257 68,252 11,056 11,056 1,251 25,381 25,381 11,831 8,590 8,590 2,726 308,920 308,920 281,280 129 142 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2021 General Government - Continued Community Development - Administration Personal Services Employee Benefits Other Employee Costs Contractual Services Total Community Development - Administration Administration and Support - Building and Inspections Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Insurance Budget Original Final Actual $ 97,986 97,986 89,222 25,767 25,767 27,746 1,723 1,723 2,785 100,000 100,000 34,391 225,476 225,476 154,144 265,742 265,742 266,958 105,249 105,249 106,845 3,037 3,037 2,531 30,892 30,892 27,878 8,500 8,500 167 3,288 3,288 1,383 15,410 15,410 15,410 Total Administration and Support - Building and Inspections 432,118 432,118 421,172 Total Community Development - Administration Benefit Payments Contractual Services 1,176,970 1,176,970 1,063,237 6,478 6,478 6,358 Total General Government 7,298,613 7,298,613 6,441,083 Public Safety Community Development - Code Enforcement Building Inspection Personal Services 705,454 705,454 703,422 Employee Benefits 334,300 334,300 331,162 Other Employee Costs 4,872 4,872 1,424 Contractual Services 76,654 76,654 39,043 Utilities 7,641 7,641 8,353 Commodities and Supplies 8,999 8,999 10,826 Total Community Development - Code Enforcement 1,137,920 1,137,920 1,094,230 130 143 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2021 Public Safety - Continued Police Department Administration and Support Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Office and Other Equipment Insurance Total Administration and Support Records Personal Services Employee Benefits Contractual Services Commodities and Supplies Office and Other Equipment Total Records Patrol and Traffic Enforcement Personal Services Employee Benefits Contractual Services Commodities and Supplies Office and Other Equipment Total Patrol and Traffic Enforcement K-9 Unit Personal Services Employee Benefits Contractual Services Commodities and Supplies Total K-9 Unit Budget Original Final Actual $ 912,390 912,390 907,600 4,388,408 4,388,408 4,336,709 168,985 168,985 154,838 229,372 229,372 190,683 25,000 25,000 18,782 29,475 29,475 24,959 23,180 15,180 1,882 190,661 190,661 190,661 5,967,471 5,959,471 5,826,114 383,586 383,586 373,139 193,177 193,177 188,607 9,188 9,188 3,362 5,320 5,320 3,363 520 520 - 591,791 591,791 568,471 8,215,904 8,215,904 8,282,061 1,527,245 1,527,245 1,670,585 545,133 547,133 543,626 110,545 104,545 86,738 6,583 6,583 2,449 10,405,410 10,401,410 10,585,459 131,030 131,030 121,205 20,883 20,883 27,757 5,580 5,580 3,672 5,020 5,020 3,124 162,513 162,513 155,758 131 144 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2021 Public Safety - Continued Police Department - Continued Crime Prevention and Public Services Personal Services Employee Benefits Other Employee Costs Contractual Services Commodities and Supplies Total Crime Prevention and Public Services Civic Events Personal Services Employee Benefits Total Civic Events Investigative Personal Services Employee Benefits Contractual Services Utilities Commodities and Supplies Office and Other Equipment Total Investigative Equipment Maintenance Contractual Services Commodities and Supplies Office and Other Equipment Total Equipment Maintenance Total Police Department Budget Original Final Actual $ 143,601 143,601 146,423 36,730 36,730 36,653 4,500 4,500 4,499 1,740 1,740 1,453 16,970 16,970 42,244 203,541 203,541 231,272 53,650 1,093 54,743 1,600,216 1,600,216 1,328,800 290,266 290,266 221,705 31,007 31,007 18,166 12,000 12,000 4,338 4,645 4,645 1,543 840 840 52 1,938,974 1,938,974 1,574,604 1,043,913 1,026,913 993,919 33,560 33,560 26,663 9,400 9,400 6,447 1,086,873 1,069,873 1,027,029 20,356,573 20,327,573 20,023,450 132 145 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2021 Public Safety - Continued Fire Department Administration and Support Personal Services Employee Benefits Other Employee Costs Contractual Services Commodities and Supplies Office and Other Equipment Insurance Total Administration and Support Fire Department Operations Personal Services Employee Benefits Other Employee Costs Contractual Services Commodities and Supplies Office and Other Equipment Total Fire Department Operations Fire Prevention Personal Services Employee Benefits Other Employee Costs Contractual Services Commodities and Supplies Total Fire Prevention Communications Contractual Services Utilities Commodities and Supplies Office and Other Equipment Total Communications Budget Original Final Actual $ 746,205 746,205 728,246 4,008,723 4,008,723 4,023,106 51,100 53,100 41,750 58,736 400,776 381,417 14,310 14,310 9,897 51,000 5,000 3,279 157,182 157,182 157,182 5,041,256 5,385,296 5,344,877 8,457,066 8,683,066 8,620,414 1,582,903 1,582,903 1,616,335 88,560 88,560 33,436 149,001 150,001 165,549 21,525 21,525 14,912 137,470 137,436 141,103 10,436,525 10,663,491 10,591,749 267,975 267,975 268,155 1121,477 112,477 96,293 5,980 5,980 3,251 2,500 2,500 1,151 18,600 18,600 14,992 407,532 407,532 383,842 3,800 3,800 3,553 21,000 21,000 18,017 1,600 1,600 90 19,500 16,150 9,865 45,900 42,550 31,525 133 146 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2021 Public Safety - Continued Fire Department - Continued Equipment Maintenance Contractual Services Emergency Preparedness Personal Services Employee Benefits Other Employee Costs Contractual Services Commodities and Supplies Total Emergency Preparedness Paid on Call Personal Services Employee Benefits Other Employee Costs Office and Other Equipment Total Paid on Call Fire Training Academy Commodities and Supplies Total Fire Department Total Public Safety Highways and Streets Public Works Department Administration and Support Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Office and Other Equipment Insurance Total Administration and Support Budget Original Final Actual $ 1,019,115 1,019,115 1,019,115 160,152 160,152 144,567 41,918 41,918 51,702 3,000 1,000 829 6,500 6,500 6,141 22,100 22,100 21,020 233,670 231,670 224,259 29,564 29,564 12,745 1,775 1,775 982 8,600 8,450 4,236 3,600 3,299 3,299 43,539 43,088 21,262 153 17,227,537 17,792,742 17,616,782 38,722,030 39,258,235 38,734,462 286,534 286,534 286,422 186,834 186,834 194,657 32,422 32,422 35,835 1,363,975 1,363,975 1,355,539 4,245 4,245 3,683 16,693 16,693 12,180 1,577 1,577 1,389 179,915 179,915 179,915 2,072,195 2,072,195 2,069,620 134 147 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2021 Highways and Streets - Continued Public Works Department - Continued Street and Buildings Division Administration Personal Services Employee Benefits Utilities Commodities and Supplies Total Administration Maintenance - Public Buildings Personal Services Employee Benefits Contractual Services Utilities Commodities and Supplies Other Expenditures Total Maintenance - Public Buildings Street Maintenance Personal Services Employee Benefits Contractual Services Commodities and Supplies Total Street Maintenance Snow Removal Personal Services Employee Benefits Contractual Services Commodities and Supplies Total Snow Removal Budget Original Final Actual $ 123,392 123,392 117,428 45,590 45,590 54,697 4,245 4,245 4,564 270 270 152 173,497 173,497 176,841 427,003 427,003 408,432 167,761 167,761 169,821 484,904 484,904 392,412 39,500 54,500 50,628 155,800 155,800 124,549 4,417 4,417 - 1,279,385 1,294,385 1,145,842 319,681 319,681 289,663 121,864 121,864 119,564 626,632 1,537,537 830,151 48,377 48,377 23,447 1,116,554 2,027,459 1,262,825 404,937 404,937 377,548 155,162 155,162 152,728 108,981 108,981 67,443 13,432 13,432 8,891 682,512 682,512 606,610 135 148 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2021 Highways and Streets - Continued Public Works Department - Continued Street and Buildings Division - Continued Storm Sewer/Basin Maintenance Personal Services Employee Benefits Contractual Services Commodities and Supplies Total Storm Sewer/Basin Maintenance Maintenance of State Highways Personal Services Employee Benefits Contractual Services Commodities and Supplies Total Maintenance of State Highways Traffic Sign Maintenance Personal Services Employee Benefits Commodities and Supplies Total Traffic Sign Maintenance Civic Events Personal Services Employee Benefits Commodities and Supplies Total Civic Events Total Street and Buildings Division Budget Original Final Actual $ 87,969 87,969 84,053 31,971 31,971 33,275 11,185 14,702 11,752 10,253 6,736 6,405 141,378 141,378 135,485 41,309 41,309 39,999 16,262 16,262 16,574 20,379 20,379 18,581 32,950 32,950 8,375 110,900 110,900 83,529 81,988 81,988 62,799 39,139 39,139 31,140 33,922 33,922 33,711 155,049 155,049 127,650 41,315 41,315 37,649 7,795 7,795 9,137 115 115 8 49,225 49,225 46,794 3,708,500 4,634,405 3,585,576 136 149 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2021 Highways and Streets - Continued Public Works Department - Continued Forestry Division Administration and Support Personal Services Employee Benefits Commodities and Supplies Total Administration and Support Maintenance of Grounds Personal Services Employee Benefits Contractual Services Commodities and Supplies Office and Other Equipment Total Maintenance of Grounds Forestry Program Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Total Forestry Program Public Grounds Beautification Personal Services Employee Benefits Contractual Services Commodities and Supplies Total Public Grounds Beautification Budget Original Final Actual $ 116,869 116,869 117,017 42,517 42,517 42,126 450 450 1,840 159,836 159,836 160,983 194,270 194,270 173,911 68,302 68,302 92,305 299,349 295,349 274,145 9,942 9,942 9,592 7,990 7,990 2,974 579,853 575,853 552,927 493,880 493,880 487,165 192,414 192,414 205,009 6,723 6,723 1,967 457,534 457,534 437,386 3,978 3,978 5,580 12,291 16,291 14,377 1,166,820 1,170,820 1,151,484 109,248 109,248 103,843 42,840 42,840 44,629 2,703 2,703 - 36,978 36,978 36,079 191,769 191,769 184,551 137 150 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2021 Highways and Streets - Continued Public Works Department - Continued Forestry Division Civic Events Personal Services Employee Benefits Total Civic Events Holiday Personal Services Employee Benefits Total Holiday Total Forestry Division Engineering Division Engineering Services Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Office and Other Equipment Total Engineering Services Traffic Control and Street Lighting Personal Services Employee Benefits Contractual Services Utilities Commodities and Supplies Total Traffic Control and Street Lighting Total Engineering Division Budget Original Final Actual $ 47,455 47,455 45,984 9,593 9,593 10,985 57,048 57,048 56,969 10,010 10,010 9,514 4,371 4,371 4,638 14,381 14,381 14,152 2,169,707 2,169,707 2,121,066 849,427 849,427 824,126 282,351 282,351 283,183 5,673 5,673 3,656 123,781 123,781 91,776 6,000 6,000 5,375 7,786 7,786 4,909 2,504 2,504 1,763 1,277,522 1,277,522 1,214,788 55,098 55,098 51,354 23,234 23,234 20,361 17,289 17,289 11,282 25,000 25,000 489 28,629 28,629 18,092 149,250 149,250 101,578 1,426,772 1,426,772 1,316,366 138 151 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2021 Highways and Streets - Continued Public Works Department - Continued Capital Expenditures Infrastructure Resurfacing/Curbs Miscellaneous - Forestry Total Capital Expenditures Total Highways and Streets Health Community Development - Health Health Inspections Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Total Health Welfare Human Services Department Administration and Support Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Office and Other Equipment Insurance Total Administration and Support Budget Original Final Actual $ 97,500 97,500 93,984 184,726 184,726 183,726 282,226 282,226 277,710 9,659,400 10,585,305 9,370,338 111,367 32,220 1,423 8,682 1,204 3,449 111,367 32,220 1,423 8,682 1,204 3,449 104,996 50,925 170 7,705 - 2,706 158,345 158,345 166,502 162,328 162,328 163,168 73,435 73,435 70,977 1,800 1,800 532 31,952 30,452 26,151 4,000 4,000 3,171 4,320 4,805 2,950 547 1,094 118 8,670 8,670 8,670 287,052 286,584 275,737 139 152 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2021 Budget Original Final Actual Welfare - Continued 215,658 211,867 66,137 Human Services Department - Continued 65,467 2,549 2,549 Social Services 100,512 100,512 88,823 Personal Services $ 262,360 262,360 261,036 Employee Benefits 91,714 91,714 90,323 Other Employee Costs 3,887 3,887 1,084 Commodities and Supplies 750 750 671 Total Social Services 358,711 358,711 353,114 Nursing/Health Services Personal Services 127,254 127,254 121,940 Employee Benefits 48,392 48,392 50,492 Other Employee Costs 1,180 1,180 275 Contractual Services 255 255 - Commodities and Supplies 5,823 5,823 1,294 Office and Other Equipment 510 510 168 Total Nursing/Health Services Community Connections Center Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Office and Other Equipment Total Community Connections Center Total Human Services Department 183,414 183,414 174,169 215,658 215,658 211,867 66,137 66,137 65,467 2,549 2,549 560 100,512 100,512 88,823 4,746 4,746 3,793 4,029 4,029 1,685 344 393,631 393,631 372,539 1,222,808 1,222,340 1,175,559 140 153 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2021 Welfare - Continued Community Development - Housing Housing Inspections Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Total Community Development - Housing Total Welfare Culture and Recreation Public Representation - Community and Civic Services Community Groups and Miscellaneous Contractual Services Other Expenditures Total Community Groups and Miscellaneous 4th of July and Civic Events Budget Original Final Actual $ 172,612 172,612 141,164 67,891 67,891 58,001 3,723 3,723 2,470 57,040 57,040 40,461 4,649 4,649 - 7,925 7,925 5,180 313,840 313,840 247,276 1,536,648 1,536,180 1,422,835 232,435 6,120 233,435 6,120 176,440 2,715 238,555 239,555 179,155 Employee Benefits 16,464 16,464 15,567 Contractual Services 29,352 29,352 26,007 Commodities and Supplies 42,766 41,766 8,372 Total 4th of July and Civic Events 88,582 87,582 49,946 Holiday Decorations Contractual Services 72,532 62,114 44,532 Commodities and Supplies 24,697 35,115 33,542 Total Holiday Decorations 97,229 97,229 78,074 141 154 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2021 Culture and Recreation - Continued Blood Drive Program Commodities and Supplies Total Culture and Recreation Total Expenditures Budget Original Final Actual $ (285) 424,366 424,366 306,890 57,799,402 59,261,044 56,442,110 142 155 VILLAGE OF MOUNT PROSPECT, ILLINOIS Debt Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2021 Revenues Taxes Property - Levy Other Taxes Home Rule Sales Tax Video Gaming Tax Intergovernmental Mount Prospect Public Library Bonds Interest Total Revenues Expenditures Debt Service Principal Retirement Interest and Fiscal Charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources Transfers In Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending Budget Original Final Actual $ 2,690,171 2,690,171 2,690,171 925,000 925,000 925,000 45,000 45,000 152,152 1,575,900 1,575,900 1,576,750 15,000 15,000 835 5,251,071 5,251,071 5,344,908 4,270,000 4,270,000 4,270,000 2,424,799 2,424,799 2,424,107 6,694,799 6,694,799 6,694,107 (1,443,728) (1,443,728) (1,349,199) 600,000 — 4,819 (843,728) (1,443,728) (1,344,380) 1,782,485 143 156 VILLAGE OF MOUNT PROSPECT, ILLINOIS Police and Fire Building Construction - Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2021 Revenues Interest $ Expenditures Capital Outlay Facility Construction Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing (Uses) Transfers Out Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending Budget Original Final 45,000 Actual 126 39,441 (45,000) (39,315) (600,000) (600,000) (4,819) (600,000) (645,000) (44,134) 44,134 144 157 NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS Motor Fuel Tax Fund: The Motor Fuel Tax Fund is used to account for the activities involved with street maintenance and construction. Financing is provided by the Village's share of state gasoline taxes. State law requires these gasoline taxes to be used to maintain streets. The Refuse Disposal Fund: - The Refuse Disposal Fund is used to account for the revenues and expenditures associated with providing solid waste collection services. Financing provided by restricted user fees and recycling income. Community Development Block Grant (CDBG) Fund: The Community Development Block Grant Fund is used to account for the revenue and expenditures associated with the CDBG. The grant is provided by the U.S. Department of Housing and Urban Development to develop urban communities by expanding economic opportunities and providing decent housing and a suitable living environment. The beneficiaries of CDBG must be individuals with low and/or moderate incomes. Asset Seizure Fund: The Asset Seizure Fund is used to account for the revenues and expenditures associated with the asset seizure program in which the Village participates. Funds received are restricted for use in the fight against drugs. Federal Equitable Share Fund: The Federal Equitable Share Fund is used to account for the revenues and expenditures associated with the Federal Shared Funds program. The use of funds is restricted for use in the fight against drugs. DUI Fines Fund: The DUI Fines Fund is used to account for the revenues and expenditures associated with the Cook County DUI fine program. Use of funds is restricted to fight against drunk driving. Foreign Fire Insurance Fund: The Foreign Fire Insurance Fund is used to account for the revenues derived from the Foreign Fire Insurance Tax and disbursement of these funds for the benefit, use and maintenance related to the Fire Department. Business District Fund: The Business District Fund is used to account for the revenues and expenditures associated with the Business Districts within the Village. The Village currently has one Business District, the Randhurst Village Business District Area. 145 158 NONMAJOR GOVERNMENTAL FUNDS - Continued CAPITAL PROJECTS FUNDS Capital Improvement Fund: The Capital Improvement Fund is used to account for the resources to provide for certain capital improvements and the replacement of Village equipment. Financing is being provided by home rule sales tax, developer contributions, transfers from other funds, and investment income. Flood Control Construction Fund: The Flood Control Construction fund is used to account for the resources to implement flood control projects throughout the Village. Financing is provided by home rule sales taxes, service charges, and investment income. Street Improvement Construction Fund: The Street Improvement Construction Fund is used to account for the resources to reconstruct Village streets. Financing is being provided by various taxes, licenses, permits, fees and interest income. 146 159 VILLAGE OF MOUNT PROSPECT, ILLINOIS Nonmajor Governmental Funds Combining Balance Sheet December 31, 2021 ASSETS Cash and Investments Receivables - Net of Allowances Other Taxes Other Accounts Due from Other Governments Prepaids Total Assets LIABILITIES Accounts Payable Accrued Payroll Retainage Payable Due to Other Governments Due to Other Funds Other Payables Total Liabilities FUND BALANCES Nonspendable Restricted Committed Assigned Unassigned Total Fund Balances Total Liabilities and Fund Balances 147 Special Capital Revenue Projects Totals $ 6,378,108 7,948,358 14,326,466 552,596 1,071,941 1,624,537 677,116 — 677,116 492 — 492 522,368 1,297,957 1,820,325 79,781 — 79,781 8,210,461 10,318,256 18,528,717 353,345 190,936 544,281 12,193 — 12,193 — 10,650 10,650 12,175 149,912 162,087 — 1,801,494 1,801,494 1,470,550 — 1,470,550 1,848,263 2,152,992 4,001,255 79,781 — 79,781 5,270,068 — 5,270,068 1,012,349— 1,012,349 — 8,157,144 8,157,144 — 8,120 8,120 6,362,198 8,165,264 14,527,462 8,210,461 10,318,256 18,528,717 160 VILLAGE OF MOUNT PROSPECT, ILLINOIS Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Year Ended December 31, 2021 Special Capital Revenue Projects Totals Revenues Taxes $ 923,920 4,998,708 5,922,628 Intergovernmental 3,444,574 2,848,071 6,292,645 Licenses and Permits — 1,451,051 1,451,051 Charges for Services 4,814,332 — 4,814,332 Interest 1,453 1,466 2,919 Miscellaneous 1,321,037 181,399 1,502,436 Total Revenues 10,505,316 9,480,695 19,986,011 Expenditures Current General Government 1,473,245 — 1,473,245 Public Safety 57,315 — 57,315 Highways and Streets 2,636,234 — 2,636,234 Health 4,818,826 — 4,818,826 Welfare 703,509 — 703,509 Capital Outlay — 10,837,406 10,837,406 Total Expenditures 9,689,129 10,837,406 20,526,535 Excess (Deficiency) of Revenues Over (Under) Expenditures 816,187 (1,356,711) (540,524) Other Financing Sources (Uses) Transfers In — 4,540,000 4,540,000 Transfers Out — (540,000) (540,000) 4,000,000 4,000,000 Net Change in Fund Balances Fund Balances - Beginning Fund Balances - Ending 816,187 2,643,289 3,459,476 5,546,011 5,521,975 11,067,986 6,362,198 8,165,264 14,527,462 148 161 VILLAGE OF MOUNT PROSPECT, ILLINOIS Nonmajor Governmental - Special Revenue Funds Combining Balance Sheet December 31, 2021 See Following Page 149 162 VILLAGE OF MOUNT PROSPECT, ILLINOIS Nonmajor Governmental - Special Revenue Funds Combining Balance Sheet December 31, 2021 ASSETS Cash and Investments Receivables - Net of Allowances Other Taxes Other Accounts Due from Other Governments Prepaids Total Assets LIABILITIES Accounts Payable Accrued Payroll Due to Other Governments Other Payables Total Liabilities FUND BALANCES N onspendable Restricted Committed Total Fund Balances Total Liabilities and Fund Balances Motor Community Fuel Refuse Development Tax Disposal Block Grant $ 4,353,330 683,199 — 201,429 — 622,565 — 150 522,368 — 78,701 — 4,554,759 1,384,465 522,368 62,304 281,222 9,819 — 12,193 — 12,175 512,549 74,479 293,415 522,368 — 78,701 — 4,480,280 — 1,012,349 — 4,480,280 1,091,050 — 4,554,759 1,384,465 522,368 163 Federal Foreign Asset Equitable DUI Fire Seizure Share Fines Insurance Business District Totals 105,013 57,872 148,677 477,734 552,283 6,378,108 351,167 552,596 54,551 677,116 492 492 522,368 - - - 1,080 - 79,781 105,505 57,872 148,677 478,814 958,001 8,210,461 151 164 353,345 12,193 - 12,175 958,001 1,470,550 958,001 1,848,263 - - - 1,080 - 79,781 105,505 57,872 148,677 477,734 - 5,270,068 1,012,349 105,505 57,872 148,677 478,814 - 6,362,198 105,505 57,872 148,677 478,814 958,001 8,210,461 151 164 VILLAGE OF MOUNT PROSPECT, ILLINOIS Nonmajor Governmental - Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Year Ended December 31, 2021 Revenues Taxes Intergovernmental Charges for Services Interest Miscellaneous Total Revenues Expenditures Current General Government Public Safety Highways and Streets Health Welfare Total Expenditures Net Change in Fund Balances Fund Balances - Beginning Motor Community Fuel Refuse Development Tax Disposal Block Grant 2,122,371 — 661,380 — 4,814,332 — 982 135 — 1,203,601 75,307 42,129 3,326,954 4,889,774 703,509 2,636,234 — 4,818,826 — 703,509 2,636,234 4,818,826 703,509 690,720 70,948 — 3,789,560 1,020,102 Fund Balances - Ending 4,480,280 1,091,050 — 152 165 Federal Foreign Asset Equitable DUI Fire Business Seizure Share Fines Insurance District Totals 102,272 821,648 923,920 752 5,878 2,805 — 651,388 3,444,574 4,814,332 31 5 6 85 209 1,453 1,321,037 783 5,883 2,811 102,357 1,473,245 10,505,316 1,473,245 1,473,245 15,921 — 4,096 37,298 — 57,315 2,636,234 4,818,826 703,509 15,921 — 4,096 37,298 1,473,245 9,689,129 (15,138) 5,883 (1,285) 120,643 51,989 149,962 65,059 — 816,187 413,755 — 5,546,011 105,505 57,872 148,677 478,814 — 6,362,198 153 166 VILLAGE OF MOUNT PROSPECT, ILLINOIS Motor Fuel Tax - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2021 Revenues Intergovernmental Motor Fuel Tax Allotments Interest Miscellaneous Total Revenues Expenditures Highway and Streets Street Maintenance Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending Budget Original Final Actual $ 1,895,845 2,120,845 2,122,371 5,000 5,000 982 1,199,940 1,199,940 1,203,601 3,100,785 3,325,785 3,326,954 3,100,376 2,782,149 2,636,234 409 543,636 690,720 3,789,560 4,480,280 154 167 VILLAGE OF MOUNT PROSPECT, ILLINOIS Motor Fuel Tax - Special Revenue Fund Schedule of Expenditures - Budget and Actual For the Fiscal Year Ended December 31, 2021 Highway and Streets Street Division Street Maintenance Contractual Services Snow Removal Contractual Services Commodities and Supplies Total Snow Removal Traffic Control/Street Lighting Contractual Services Utilities Total Traffic Control/Street Lighting Street Improvement Projects Infrastructure Total Expenditures 155 Budget Original Final Actual $ 183,126 183,126 182,924 84,463 84,463 79,933 380,000 380,000 352,189 464,463 464,463 432,122 99,787 99,787 90,577 254,000 254,000 199,838 353,787 353,787 290,415 2,099,000 1,780,773 1,730,773 3,100,376 2,782,149 2,636,234 168 VILLAGE OF MOUNT PROSPECT, ILLINOIS Refuse Disposal - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2021 Revenues Charges for Services Interest Miscellaneous Total Revenues Expenditures Health Refuse Disposal Division Personal Services Employee Benefits Other Employee Costs Contractual Services Commodities and Supplies Insurance Total Expenditures Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending Budget Original Final S 4,775,000 4,848,000 5,348 5,348 10,000 10,000 Actual 4,814,332 135 75,307 4,790,348 4,863,348 4,889,774 316,889 316,889 304,945 129,532 153,184 164,320 1,377 1,627 256 4,287,258 4,312,008 4,319,690 42,560 42,560 16,883 12,732 12,732 12,732 4,790,348 4,839,000 4,818,826 24,348 70,948 1,091,050 156 169 VILLAGE OF MOUNT PROSPECT, ILLINOIS Refuse Disposal - Special Revenue Fund Schedule of Revenues - Budget and Actual For the Fiscal Year Ended December 31, 2021 Charges for Services Single -Family Service Charges Multi -Family Service Charges Single -Family Penalties Multi -Family Penalties Contract Administrative Fees Recycling Bins Yard Waste Cart Rental Total Charges for Services Interest Miscellaneous Reimbursements Other Total Miscellaneous Total Revenues 157 Budget Original Final Actual S 3,500,000 3,500,000 3,470,639 1,100,000 1,173,000 1,172,931 36,500 36,500 32,783 3,500 3,500 3,405 107,500 107,500 108,334 2,500 2,500 1,300 25,000 25,000 24,940 4,775,000 4,848,000 4,814,332 5,348 5,348 135 5,000 5,000 66,791 5,000 5,000 8,516 10,000 10,000 75,307 4,790,348 4,863,348 4,889,774 170 VILLAGE OF MOUNT PROSPECT, ILLINOIS Community Development Block Grant - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2021 Revenues Intergovernmental Grant - CDBG Miscellaneous Program Income Total Revenues Expenditures Welfare Administration and Support Community Programs Residential Rehabilitation Total Expenditures Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending Budget Original Final Actual $ 388,868 634,694 661,380 79,632 79,632 42,129 468,500 714,326 703,509 58,500 304,326 410,000 410,000 1,700 385,789 316,020 468,500 714,326 703,509 158 171 VILLAGE OF MOUNT PROSPECT, ILLINOIS Asset Seizure - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2021 Revenues Intergovernmental Seized Assets Interest Total Revenues Expenditures Public Safety Other Employee Costs Contractual Services Equipment Total Expenditures Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending Budget Original Final Actual $ 5,000 5,000 752 1,000 1,000 31 6,000 6,000 783 1,000 1,000 — 3,000 3,000 — 3,000 15,921 15,921 7,000 19,921 15,921 (1,000) (13,921) (15,138) 105,505 159 172 VILLAGE OF MOUNT PROSPECT, ILLINOIS Federal Equitable Share - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2021 Revenues Intergovernmental Federal Equitable Shared Funds Interest Total Revenues Expenditures Public Safety Contractual Services Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending Budget Original Final Actual $ 4,000 100 4,000 100 5,878 5 4,100 4,100 5,883 1,000 1,000 — 3,100 3,100 5,883 51,989 57,872 160 173 VILLAGE OF MOUNT PROSPECT, ILLINOIS DUI Fines - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2021 Revenues Intergovernmental DUI Fines Interest Total Revenues Expenditures Public Safety Other Employee Costs Contractual Services Equipment Total Expenditures Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending Budget Original Final Actual $ 10,000 10,000 2,805 200 200 6 10,200 10,200 2,811 1,000 3,043 3,043 1,000 1,000 — 46,000 1,053 1,053 48,000 5,096 4,096 (37,800) 5,104 (1,285) 149,962 148,677 161 174 VILLAGE OF MOUNT PROSPECT, ILLINOIS Foreign Fire Insurance - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2021 Revenues Taxes Other Taxes Foreign Fire Insurance Tax Interest Total Revenues Expenditures Public Safety Insurance Other Employee Costs Contractual Services Commodities and Supplies Building Improvements Equipment Total Expenditures Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending Budget Original Final Actual $ 75,000 75,000 102,272 2,500 2,500 85 77,500 77,500 102,357 500 500 — 7,950 7,950 684 11,750 11,750 6,078 11,000 11,000 — 6,000 6,000 — 29,750 19,750 30,536 66,950 56,950 37,298 10,550 20,550 65,059 411 755 478,814 162 175 VILLAGE OF MOUNT PROSPECT, ILLINOIS Business District - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2021 Budget Original Final Actual Revenues Taxes Other Taxes Food and Beverage Tax S 385,000 385,000 331,694 Hotel/Motel Tax 200,000 200,000 164,828 Movie Theater Tax 75,000 75,000 34,249 Business District Tax 275,000 275,000 290,877 Intergovernmental State Sales Tax 450,000 450,000 651,388 Interest 5,000 5,000 209 Total Revenues 1,390,000 1,390,000 1,473,245 Expenditures General Government 1,390,000 1,390,000 1,473,245 Net Change in Fund Balance Fund Balance - Beginning — Fund Balance - Ending — 163 176 VILLAGE OF MOUNT PROSPECT, ILLINOIS Nonmajor Governmental - Capital Projects Funds Combining Balance Sheet December 31, 2021 ASSETS Cash and Investments Receivables - Net of Allowances Other Taxes Due from Other Governments Total Assets LIABILITIES Accounts Payable Retainage Payable Due to Other Governments Due to Other Funds Total Liabilities FUND BALANCES Flood Street Capital Control Improvement Improvement Construction Construction Totals $ 4,799,408 208,076 2,940,874 7,948,358 337,117 337,117 397,707 1,071,941 1,297,957 — 1,297,957 1,801,494 — 1,801,494 5,136,525 1,843,150 3,338,581 10,318,256 174,092 11,594 5,250 190,936 10,650 10,650 21,942 127,970 149,912 1,801,494 — 1,801,494 184,742 1,835,030 133,220 2,152,992 Assigned 4,951,783 — 3,205,361 8,157,144 Unassigned 8,120 — 8,120 Total Fund Balances 4,951,783 8,120 3,205,361 8,165,264 Total Liabilities and Fund Balances 5,136,525 1,843,150 3,338,581 10,318,256 164 177 VILLAGE OF MOUNT PROSPECT, ILLINOIS Nonmajor Governmental - Capital Projects Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Year Ended December 31, 2021 Revenues Taxes Other Intergovernmental Licenses, Permits and Fees Interest Miscellaneous Total Revenues Expenditures Capital Outlay Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Transfers In Transfers Out Net Change in Fund Balances Fund Balances - Beginning Fund Balances - Ending Flood Street Capital Control Improvement Improvement Construction Construction Totals $ 1,662,117 978,117 2,358,474 4,998,708 — 2,848,071 — 2,848,071 1,451,051 1,451,051 890 41 535 1,466 — 34,833 146,566 181,399 1,663,007 3,861,062 3,956,626 9,480,695 932,452 7,667,909 2,237,045 10,837,406 730,555 (3,806,847) 1,719,581 (1,356,711) 750,000 3,790,000 — 4,540,000 (540,000) (540,000) 750,000 3,790,000 (540,000) 4,000,000 1,480,555 (16,847) 1,179,581 2,643,289 3,471,228 24,967 2,025,780 5,521,975 4,951,783 8,120 3,205,361 8,165,264 165 178 VILLAGE OF MOUNT PROSPECT, ILLINOIS Capital Improvement - Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2021 Revenues Taxes Other Taxes Home Rules Sales Tax Intergovernmental Interest Total Revenues Expenditures Capital Outlay Equipment Building Improvements Infrastructure Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources Transfers In Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending Budget Original Final S 1,325,000 1,325,000 500,000 200,000 15,000 15,000 Actual 1,662,117 :'1 1,840,000 1,540,000 1,663,007 323,897 243,271 164,252 908,000 483,875 269,067 1,574,340 1,743,094 499,133 2,806,237 2,470,240 932,452 (966,237) (930,240) 750,000 750,000 (216,237) (180,240) 730,555 750,000 1,480,555 3,471,228 4,951,783 166 179 VILLAGE OF MOUNT PROSPECT, ILLINOIS Capital Improvement - Capital Projects Fund Schedule of Expenditures - Budget and Actual For the Fiscal Year Ended December 31, 2021 Capital Outlay Equipment Finance Department Software Field Cameras Public Safety Drone Mobile Video Rec Sys Medical Equipment Village Warning Sirens Other Equipment Total Equipment Building Improvements Public Works Facility Improvements HVAC Replacements Parking Lot Improvements Village Hall Facility Improvements Intersection improvements Fire Station Improvements Other Public Building Improvements Total Building Improvements Infrastructure Residential Street Lights Residential Street Light Improvements Corridor Street Lights Facade Program Kensington Road Bike Path Brick Sidewalks Bridge Rehab Pedestrian Bridge Central Road Pedestrian Crossing Total Infrastructure Budget Original Final Actual $ 46,897 46,897 48,000 40,000 40,000 - - 12,600 12,016 - 26,774 26,774 42,000 42,000 40,970 120,000 8,972 8,972 75,000 75,000 36,492 323,897 243,271 164,252 375,000 153,747 153,746 140,000 115,000 - 70,000 70,000 67,804 93,000 100,000 50,123 - 21,156 6,956 130,000 8,972 8,972 100,000 115,000 31,589 908,000 483,875 269,067 134,340 134,340 18,017 225,000 133,299 132,860 - 293,893 - 100,000 100,000 50,123 200,000 200,000 1,495 125,000 125,000 112,363 50,000 50,000 49,257 300,000 370,501 72,108 440,000 336,061 62,910 1,574,340 1,743,094 499,133 Total Expenditures 2,806,237 2,470,240 932,452 167 180 VILLAGE OF MOUNT PROSPECT, ILLINOIS Flood Control Construction - Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2021 Revenues Taxes Other Taxes Home Rule Sales Tax Intergovernmental Interest Miscellaneous Fees Reimbursements Total Revenues Expenditures Capital Outlay Public Improvements Infrastructure Other Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources Transfers In Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending Budget Original Final Actual S 441,000 441,000 978,117 6,400,000 4,250,000 2,848,071 8,000 8,000 41 28,000 28,000 9,833 45,000 45,000 25,000 6,922,000 4,772,000 3,861,062 9,697,500 9,673,226 7,619,721 59,570 62,570 48,188 9,757,070 9,735,796 7,667,909 (2,835,070) (4,963,796) (3,806,847) 2,790,000 3,790,000 3,790,000 (45,070) (1,173,796) (16,847) 24,967 8,120 168 181 VILLAGE OF MOUNT PROSPECT, ILLINOIS Flood Control Construction - Capital Projects Fund Schedule of Expenditures - Budget and Actual For the Fiscal Year Ended December 31, 2021 Budget Original Final Actual Capital Outlay 59,570 62,570 48,188 Public Improvements 9,757,070 9,735,796 7,667,909 Infrastructure Levee Repairs $ 40,800 37,800 8,471 Culvert and Ditch 30,600 30,600 — Levee Supplies 5,100 5,100 3,640 Creek Bank Stabilization 175,500 152,500 176 Creek Tree Trimming 25,500 25,500 24,251 Private Property Drainage 120,000 144,500 131,670 Levee 37 9,300,000 9,277,226 7,451,513 Total Infrastructure 9,697,500 9,673,226 7,619,721 Other Electricity 3,570 3,570 — Residential Reimbursements 5,000 5,000 — Contractual Services 51,000 54,000 48,188 Total Other 59,570 62,570 48,188 Total Expenditures 9,757,070 9,735,796 7,667,909 169 182 VILLAGE OF MOUNT PROSPECT, ILLINOIS Street Improvement Construction - Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2021 Revenues Taxes Other Taxes Home Rule Sales Tax Municipal Motor Fuel Tax Licenses, Permits and Fees Interest Miscellaneous Reimbursements Other Total Revenues Expenditures Capital Outlay Contractual Services Infrastructure Street Resurfacing Other Expenditures Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing (Uses) Transfers Out Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending Budget Original Final 1,325,000 650,000 1,500,000 10,000 1,325,000 650,000 1,500,000 10,000 Actual 1,662,117 696,357 1,451,051 535 5,000 5,000 — 877,000 140,000 146,566 4,367,000 3,630,000 3,956,626 40,000 3,707,000 80,000 40,000 3,804,958 32,927 19,858 2,184,260 32,927 3,827,000 3,877,885 2,237,045 540,000 (247,885) 1,719,581 (540,000) (540,000) (540,000) (787,885) 1,179,581 2,025,780 3,205,361 170 183 PROPRIETARY FUNDS 171 184 ENTERPRISE FUNDS The Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises where the intent is that costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or where it has been decided that periodic determination of revenues earned, expenses incurred and/or net income is appropriate for capital maintenance, public policy, management control, accountability or other purpose. Water and Sewer Fund: The Water and Sewer Fund is a major fund and is used to account for the activities of the water and sewer operations. The Village operates sewerage lift and relief stations and waste water collection systems and the water distribution system. Parking System Revenue Fund: The Parking System Revenue Fund is a nonmajor fund and is used to account for the provision of public parking services with fees shared with the commuter railroad. All activities are accounted for including administration, operations, maintenance and collection. Village Parking System Fund: The Village Parking System Fund is a nonmajor fund and is used to account for the provision of Village -owned public parking services including the Village Hall parking deck and leased commuter spaces. All activities are accounted for including administration, operations, maintenance, financing, related debt service and billing and collection. 172 185 VILLAGE OF MOUNT PROSPECT, ILLINOIS Water and Sewer - Enterprise Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual For the Fiscal Year Ended December 31, 2021 Operating Revenues Charges for Services Operating Expenses Administration and Maintenance Operating (Loss) Nonoperating Revenues (Expenses) Interest Income Other Income Principal Payment Property Taxes Disposal of Capital Assets Interest Expense Change in Net Position - Budgetary Basis Adjustments to GAAP Basis Depreciation Amortization of Asset Retirement Obligation Capital Assets Capitalized Total Adjustments to GAAP Basis Change in Net Position - GAAP Basis Net Position - Beginning as Restated Net Position - Ending Budget Original Final Actual $ 17,115,645 17,115,645 17,735,543 20,574,524 19,569,873 17,984,013 (3,458,879) (2,454,228) (248,470) 101,100 101,100 (19,159) 45,000 45,000 47,230 (525,000) (525,000) — (31,127) (14,555) (664,181) (664,181) (661,718) (1,043,081) (1,043,081) (679,329) (4,501,960) (3,497,309) (927,799) (804,017) (7,500) 2 onn 2 1 Q 3,092,801 2,165,002 42,982,296 45,147,298 173 186 VILLAGE OF MOUNT PROSPECT, ILLINOIS Water and Sewer - Enterprise Fund Schedule of Operating Revenues - Budget and Actual For the Fiscal Year Ended December 31, 2021 Charges for Services Water Sales Sewer Fees Sewer Construction Charge Water Penalties Water Meter Fees Water and Sewer Taps Sewer Penalties Budget Original Final Actual $ 13,682,845 13,682,845 14,071,601 3,304,800 3,304,800 3,486,555 (46) 80,000 80,000 105,380 27,000 27,000 39,960 1,000 1,000 6,075 20,000 20,000 26,018 Total Operating Revenues 17,115,645 17,115,645 17,735,543 174 187 VILLAGE OF MOUNT PROSPECT, ILLINOIS Water and Sewer - Enterprise Fund Schedule of Operating Expenses - Budget and Actual For the Fiscal Year Ended December 31, 2021 Administration and Maintenance Administration and Support Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Insurance Commodities and Supplies Capital Expenses Total Administration and Support Maintenance of Buildings Personal Services Employee Benefits Contractual Services Utilities Commodities and Supplies Total Maintenance of Buildings Maintenance of Grounds Personal Services Employee Benefits Contractual Services Commodities and Supplies Total Maintenance of Grounds Water Supply Maintenance and Repair Personal Services Employee Benefits Contractual Services Utilities Commodities and Supplies Distribution System Total Water Supply Maintenance and Repair Budget Original Final Actual $ 512,829 512,829 512,517 277,542 277,542 40,003 45,347 45,347 48,125 290,534 290,534 303,992 8,700 8,700 10,894 178,102 178,102 178,102 15,081 15,081 3,126 1,500 1,500 - 1,329,635 1,329,635 1,096,759 185,020 185,020 180,963 77,617 77,617 83,500 16,000 16,000 4,965 6,756 6,756 6,365 1,688 1,688 1,676 287,081 287,081 277,469 54,037 54,037 35,600 15,000 15,000 13,565 53,690 53,690 48,727 6,659 6,659 5,336 129,386 129,386 103,228 376,029 376,029 355,684 145,646 145,646 164,371 123,973 123,973 104,205 81,600 81,600 85,428 69,523 69,523 59,949 50,000 50,000 39,530 846,771 846,771 809,167 175 188 VILLAGE OF MOUNT PROSPECT, ILLINOIS Water and Sewer - Enterprise Fund Schedule of Operating Expenses - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2021 Administration and Maintenance - Continued Water Distribution Maintenance and Repair Personal Services Employee Benefits Contractual Services Commodities and Supplies Distribution System Capital Expenses Total Water Distribution Maintenance and Repair Water Valve and Hydrant Maintenance Personal Services Employee Benefits Contractual Services Commodities and Supplies Total Water Valve and Hydrant Maintenance Water Meter Installation, Repair and Replacement Personal Services Employee Benefits Contractual Services Commodities and Supplies Capital Expenses Total Water Meter Installation, Repair and Replacement Equipment Maintenance Contractual Services Sanitary Sewer Maintenance and Repair Personal Services Employee Benefits Contractual Services Utilities Commodities and Supplies Total Sanitary Sewer Maintenance and Repair Budget Original Final Actual $ 608,516 608,516 560,071 213,153 213,153 217,377 261,167 273,167 235,886 83,726 83,726 19,332 20,000 8,000 5,293 1,103 1,103 954 1,187,665 1,187,665 1,038,913 218,840 218,840 206,405 68,731 68,731 65,214 60,838 60,838 60,838 103,429 103,429 102,293 451,838 451,838 434,750 55,968 55,968 46,201 16,675 16,675 15,207 135,247 135,247 120,929 3,504 3,504 3,282 66,300 66,300 68,472 277,694 277,694 254,091 1,017,144 1,017,144 1,017,144 389,352 389,352 366,932 154,717 154,717 149,164 212,493 212,493 147,847 24,895 24,895 9,699 26,553 26,553 24,810 808,010 808,010 698,452 176 189 VILLAGE OF MOUNT PROSPECT, ILLINOIS Water and Sewer - Enterprise Fund Schedule of Operating Expenses - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2021 Administration and Maintenance - Continued Water System Improvements Capital Expenses Sanitary System Improvements Capital Expenses Storm Sewer Improvements Capital Expenses Improvements to Public Buildings Capital Expenses Lake Michigan Water Acquisition Contractual Services Capital Expenses Total Lake Michigan Water Acquisition Total Operating Expenses Budget Original Final Actual $ 4,225,000 3,025,839 106,476 1,980,000 1,938,731 1,002,607 800,000 800,000 235,779 995 7,234,300 7,234,300 7,239,644 3,904,318 7,234,300 7,234,300 11,143,962 20,574,524 19,569,873 17,984,013 177 190 VILLAGE OF MOUNT PROSPECT, ILLINOIS Nonmajor Enterprise Funds Combining Statement of Net Position December 31, 2021 ASSETS Current Assets Cash and Investments Receivables - Net of Allowances Other Total Current Assets Noncurrent Assets Capital Assets Depreciable Accumulated Depreciation Total Noncurrent Assets Total Assets LIABILITIES Current Liabilities Accounts Payable Accrued Payroll Other Payables Compensated Absences Payable Total Current Liabilities Noncurrent Liabilities Compensated Absences Payable Total Liabilities NET POSITION Parking System Village Parking Revenue System Totals $ 106,093 221,019 49 327,112 49 106,093 221,068 327,161 364,800 — 364,800 (364,800) — (364,800) 106,093 221,068 327,161 7,420 2,329 9,749 768 768 1,536 680 180 860 447 447 894 9,315 3,724 13,039 1,788 1,788 3,576 11,103 5,512 16,615 Unrestricted 94,990 215,556 310,546 178 191 VILLAGE OF MOUNT PROSPECT, ILLINOIS Nonmajor Enterprise Funds Combining Statement of Revenues, Expenses and Changes in Net Position For the Fiscal Year Ended December 31, 2021 Operating Revenues Charges for Services Parking Fees Rental Fees Convenience Fees Total Operating Revenues Operating Expenses Administration, Maintenance and Improvements Operating (Loss) Nonoperating Revenues Interest Income Other Income Change in Net Position Net Position - Beginning Net Position - Ending Parking System Village Parking Revenue System Totals $ 44,419 8,272 52,691 — 2,500 2,500 965 133 1,098 45,384 10,905 56,289 179 85,193 91,632 176,825 (39,809) (80,727) (120,536) 37 69 106 — 139 139 37 208 245 (39,772) (80,519) (120,291) 134,762 296,075 430,837 94,990 215,556 310,546 192 VILLAGE OF MOUNT PROSPECT, ILLINOIS Nonmajor Enterprise Funds Combining Statement of Cash Flows For the Fiscal Year Ended December 31, 2021 Cash Flows from Operating Activities Receipts from Customers and Users Payments to Suppliers Payments to Employees Cash Flows from Investing Activities Interest Received Net Change in Cash and Cash Equivalents Cash and Cash Equivalents - Beginning Cash and Cash Equivalents - Ending Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities Operating (Loss) Adjustments to Reconcile Operating Income Income to Net Cash Provided by (Used in) Operating Activities: Other Income (Expense) (Increase) Decrease in Current Assets Increase (Decrease) in Current Liabilities Net Cash Provided by Operating Activities 180 Parking System Village Parking Revenue System Totals $ 45,384 10,873 56,257 (63,247) (76,592) (139,839) (18,025) (18,025) (36,050) (35,888) (83,744) (119,632) 37 69 106 (35,851) (83,675) (119,526) 141,944 304,694 446,638 106,093 221,019 327,112 (39,809) (80,727) (120,536) 139 139 — (32) (32) 3,921 (3,124) 797 (35,888) (83,744) (119,632) 193 VILLAGE OF MOUNT PROSPECT, ILLINOIS Parking System Revenue - Enterprise Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual For the Fiscal Year Ended December 31, 2021 Operating Revenues Charges for Services Parking Fees Convenience Fees Total Operating Revenues Operating Expenses Administration, Maintenance and Improvements Operating (Loss) Nonoperating Revenues Interest Income Change in Net Position Net Position - Beginning Net Position - Ending Budget Original Final Actual $ 157,500 1,116 157,500 1,116 44,419 965 158,616 158,616 45,384 171,913 171,913 85,193 (13,297) (13,297) (39,809) 1,585 1,585 37 (11,712) (11,712) (39,772) 94,990 181 194 VILLAGE OF MOUNT PROSPECT, ILLINOIS Parking System Revenue - Enterprise Fund Schedule of Operating Expenses - Budget and Actual For the Fiscal Year Ended December 31, 2021 Administration, Maintenance and Improvements Personal Services Employee Benefits Contractual Services Utilities Insurance Commodities and Supplies Budget Original Final Actual $ 18,535 18,535 18,025 7,459 7,459 6,726 124,575 124,575 50,342 9,998 9,998 2,073 335 335 335 11,011 11,011 7,692 Total Operating Expenses 171,913 171,913 85,193 182 195 VILLAGE OF MOUNT PROSPECT, ILLINOIS Village Parking System - Enterprise Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual For the Fiscal Year Ended December 31, 2021 Operating Revenues Charges for Services Parking Fees Rental Fees Convenience Fees Total Operating Revenues Operating Expenses Administration, Maintenance and Improvements Operating Income (Loss) Nonoperating Revenues Other Income Interest Income Change in Net Position Net Position - Beginning Net Position - Ending Budget Original Final Actual $ 162,000 162,000 8,272 6,600 6,600 2,500 2,372 2,372 133 170,972 170,972 10,905 134,737 146,737 91,632 36,235 24,235 (80,727) 139 3,753 3,753 69 3,753 3,753 208 39,988 27,988 (80,519) 215,556 183 196 VILLAGE OF MOUNT PROSPECT, ILLINOIS Village Parking System - Enterprise Fund Schedule of Operating Expenses - Budget and Actual For the Fiscal Year Ended December 31, 2021 Administration, Maintenance and Improvements Personal Services Employee Benefits Contractual Services Insurance Commodities and Supplies Capital Expenses Budget Original Final Actual $ 18,568 18,568 18,025 7,510 7,510 6,726 57,759 57,759 26,334 326 326 326 574 574 574 50,000 62,000 39,647 Total Operating Expenses 134,737 146,737 91,632 184 197 INTERNAL SERVICE FUNDS Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies other governmental unit, or to other governmental units, on a cost - reimbursement basis. Computer Replacement Fund: The Computer Replacement Fund is used to account for the acquisition of Village computer hardware. Financing is being provided by charges to various Village funds. Risk Management Fund: The Risk Management Fund is used to account for the servicing and payment of claims for liability, property, casualty coverage, workers' compensation and medical benefits. Financing is being provided by charges in the various Village funds. Vehicle Replacement Fund: The Vehicle Replacement Fund is used to account for the acquisition and depreciation of Village vehicles. Financing is being provided by charges to the General, and Water and Sewer Funds. Vehicle Maintenance Fund: The Vehicle Maintenance Fund is used to account for the maintenance and repair of all Village vehicles. Financing is being provided by charges to various Village funds. 185 198 VILLAGE OF MOUNT PROSPECT, ILLINOIS Internal Service Funds Combining Statement of Net Position December 31, 2021 See Following Page 186 199 VILLAGE OF MOUNT PROSPECT, ILLINOIS Internal Service Funds Combining Statement of Net Position December 31, 2021 ASSETS Current Assets Cash and Investments Receivables - Net of Allowances - Accounts Accrued Interest Other Due from Other Governments Deposits - Insurance Inventories Prepaids Total Current Assets Noncurrent Assets Capital Assets Nondepreciable Depreciable Accumulated Depreciation Other Assets Deposits - Insurance Total Noncurrent Assets Total Assets DEFERRED OUTFLOWS OF RESOURCES Deferred Items - RBP Total Assets and Deferred Outflows of Resources LIABILITIES Current Liabilities Accounts Payable Accrued Payroll Due to Other Governments Claims Payable Other Payables Compensated Absences Payable Total Current Liabilities Noncurrent Liabilities Compensated Absences Payable Claims Payable Total OPEB Liability - RBP Total Noncurrent Liabilities Total Liabilities DEFERRED INFLOWS OF RESOURCES Deferred Items - RBP Total Liabilities and Deferred Inflows of Resources NET POSITION Investment in Capital Assets Unrestricted Total Net Position Computer Replacement $ 319,037 319,037 150,000 169,532 (74,767) 244,765 244,765 563,802 563,802 244,765 319,037 563,802 187 200 Risk Vehicle Vehicle Management Replacement Maintenance Totals 473,194 11,882,768 1,333,930 14,008,929 - 11,401 - 11,401 9,534 14,513 - 24,047 - - 9,493 9,493 3,579,477 - - 3,579,477 - - 355,169 355,169 73,045 - 16,038 89,083 4,135,250 11,908,682 1,714,630 18,077,599 - 1,610,969 - 1,760,969 - 15,569,712 92,062 15,831,306 - (9,540,212) (92,062) (9,707,041) - 7,640,469 - 7,885,234 1,249,584 - - 1,249,584 1,249,584 7,640,469 - 9,134,818 5,384,834 19,549,151 1,714,630 27,212,417 - - 111,425 111,425 5,384,834 19,549,151 1,826,055 27,323,842 86,123 47,354 68,576 202,053 - - 36,135 36,135 519 - - 519 281,227 - - 281,227 111,588 - - 111,588 - - 13,858 13,858 479,457 47,354 118,569 645,380 - - 55,430 55,430 268,282 - - 268,282 - - 474,267 474,267 268,282 - 529,697 797,979 747,739 47,354 648,266 1,443,359 - - 127,879 127,879 747,739 47,354 776,145 1,571,238 - 7,640,469 - 7,885,234 4,637,095 11,861,328 1,049,910 17,867,370 4,637,095 19,501,797 1,049,910 25,752,604 188 201 VILLAGE OF MOUNT PROSPECT, ILLINOIS Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Net Position For the Fiscal Year Ended December 31, 2021 Computer Replacement Operating Revenues Charges for Services $ 178,400 Contributions — Miscellaneous — Total Operating Revenues 178,400 Operating Expenses Administration and Maintenance 152,264 Insurance and Claims — Depreciation 13,078 Total Operating Expenses 165,342 Operating Income 13,058 Nonoperating Revenues (Expenses) Disposal of Capital Assets — Interest Income 52 52 Change in Net Position Net Position - Beginning Net Position - Ending 13,110 550,692 563,802 189 202 Risk Vehicle Vehicle Management Replacement Maintenance Totals 7,791,936 1,724,782 1,000,558 2,035,158 2,357,844 12,363,338 1,724,782 1,000,558 10,517,276 2,035,158 2,357,844 15,088,678 360,096 2,159 2,016,639 9,245,384 2,531,158 9,245,384 — 1,109,297 — 1,122,375 9,605,480 1,111,456 2,016,639 12,898,917 911,796 923,702 341,205 2,189,761 — 20,996 6,081 27,077 154 (83,454) 140 (83,108) 154 (62,458) 6,221 (56,031) 911,950 861,244 347,426 2,133,730 3,725,145 18,640,553 702,484 23,618,874 4,637,095 19,501,797 1,049,910 25,752,604 190 203 VILLAGE OF MOUNT PROSPECT, ILLINOIS Internal Service Funds Combining Statement of Cash Flows For the Fiscal Year Ended December 31, 2021 Computer Replacement Cash Flows from Operating Activities Receipts from Customers and Users $ — Interfund Services Provided 178,400 Payments to Suppliers (156,593) Payments to Employees — 21,807 Cash Flows from Capital and Related Financing Activities Disposal of Capital Assets Purchase of Capital Assets Cash Flows from Investing Activities Interest Received Net Change in Cash and Cash Equivalents Cash and Cash Equivalents - Beginning Cash and Cash Equivalents - Ending Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities Operating Income Adjustments to Reconcile Operating Income to Net Cash Provided by (Used in) Operating Activities Depreciation (increase) Decrease in Current Assets Increase (Decrease) in Current Liabilities Net Cash Provided by Operating Activities (100,988) (100,988 52 (79,129) 398,166 319,037 13,058 13,078 (4,329) 21,807 191 204 Risk Vehicle Vehicle Management Replacement Maintenance Totals 3,766,899 5,840,633 (9,857,645) 2,009,244 (33,918) 2,374,736 (1,108,333) 3,766,899 10,403,013 (11,156,489) (961,519) (961,519) (250,113) 1,975,326 304,884 2,051,904 66,850 M.U. 72,931 (1,715,002) — (1,815,990) (1,648,152) 6,081 (1,743,059) 154 (83,454) 140 (83,108) (249,959) 243,720 311,105 225,737 723,153 11,639,048 1,022,825 13,783,192 473,194 11,882,768 1,333,930 14,008,929 911,796 923,702 341,205 2,189,761 1,109,297 — 1,122,375 (909,744) (25,914) 16,892 (918,766) (252,165) (31,759) (53,213) (341,466) (250,113) 1,975,326 304,884 2,051,904 192 205 VILLAGE OF MOUNT PROSPECT, ILLINOIS Computer Replacement - Internal Service Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual For the Fiscal Year Ended December 31, 2021 Operating Revenues Charges for Services Water and Sewer Fund General Fund Total Operating Revenues Operating Expenses Administration Capital Outlay Depreciation Total Operating Expenses Operating Income (Loss) Nonoperating Revenues Interest Income Change in Net Position Net Position - Beginning Net Position - Ending Budget Original Final Actual $ 8,920 169,480 8,920 169,480 8,920 169,480 178,400 178,400 178,400 238,400 338,400 152,264 13,078 238,400 338,400 165,342 (60,000) (160,000) 1,000 1,000 (59,000) (159,000) 13,058 52 13,110 550,692 563,802 193 206 VILLAGE OF MOUNT PROSPECT, ILLINOIS Computer Replacement - Internal Service Fund Schedule of Operating Expenses - Budget and Actual For the Fiscal Year Ended December 31, 2021 Administration Capital Outlay Depreciation Budget Original Final Actual $ 238,400 338,400 152,264 — — 13,078 Total Operating Expenses 238,400 338,400 165,342 194 207 VILLAGE OF MOUNT PROSPECT, ILLINOIS Risk Management - Internal Service Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual For the Fiscal Year Ended December 31, 2021 Budget Original Final Actual Operating Revenues Charges for Services $ 7,755,619 7,755,619 7,791,936 Contributions 1,754,000 1,754,000 1,724,782 Miscellaneous 30,000 30,000 1,000,558 Total Operating Revenues 9,539,619 9,539,619 10,517,276 Operating Expenses Administration 400,000 400,000 360,096 Insurance and Claims 9,214,300 9,361,950 9,245,384 Total Operating Expenses 9,614,300 9,761,950 9,605,480 Operating Income (Loss) (74,681) (222,331) 911,796 Nonoperating Revenues Interest Income 3,000 3,000 154 Change in Net Position (71,681) (219,331) 911,950 Net Position - Beginning 3,725,145 Net Position - Ending 4,637,095 195 208 VILLAGE OF MOUNT PROSPECT, ILLINOIS Risk Management - Internal Service Fund Schedule of Operating Revenues - Budget and Actual For the Fiscal Year Ended December 31, 2021 Charges for Services General Fund Refuse Disposal Fund Water and Sewer Fund Parking System Revenue Fund Village Parking System Fund Vehicle Maintenance Fund Library Total Charges for Services Contributions Employee Health Insurance Dental Insurance Additional Life Insurance Vision Insurance Retiree Health Insurance Dental Insurance Vision Insurance Total Contributions Miscellaneous Other Reimbursements Miscellaneous Income Total Miscellaneous Budget Original Final Actual $ 6,443,222 6,443,222 6,462,980 16,932 16,932 16,932 251,102 251,102 251,102 535 535 535 526 526 526 18,302 18,302 18,302 1,025,000 1,025,000 1,041,559 7,755,619 7,755,619 7,791,936 654,000 654,000 677,928 140,000 140,000 128,004 25,000 25,000 24,711 15,425 900,000 900,000 846,251 35,000 35,000 32,096 — — 367 1,754,000 1,754,000 1,724,782 30,000 30,000 999,737 821 30,000 30,000 1,000,558 Total Operating Revenues 9,539,619 9,539,619 10,517,276 196 209 VILLAGE OF MOUNT PROSPECT, ILLINOIS Risk Management - Internal Service Fund Schedule of Operating Expenses - Budget and Actual For the Fiscal Year Ended December 31, 2021 Administration Casualty and Property Program Other Contractual Services Medical Program Claims Administration Total Administration Insurance and Claims Casualty and Property Program Liability Insurance Otherinsurance Property Claims Liability Claims Workers' Compensation Claims Unemployment Compensation Claims Tree Hazard Study Other Claims Total Casualty and Property Program Medical Program Medical Expense - HMO Plan Medical Expense - Indemnity Plan Medical Expense - Dental Medical Expense - Vision Health and Wellness Supplies Life Insurance Total Medical Program Budget Original Final Actual $ 30,000 30,000 6,900 370,000 370,000 353,196 400,000 400,000 360,096 600,000 600,000 884,127 25,000 25,000 26,822 100,000 100,000 - 150,000 150,000 94,745 400,000 400,000 240,397 10,000 10,000 - 10,000 10,000 9,990 10,000 10,000 37,683 1,305,000 1,305,000 1,293,764 1,300,000 1,300,000 1,227,622 6,210,000 6,340,000 6,339,214 300,000 300,000 298,681 - 17,650 17,650 50,000 50,000 5,702 49,300 49,300 62,751 7,909,300 8,056,950 7,951,620 Total Insurance and Claims 9,214,300 9,361,950 9,245,384 Total Operating Expenses 9,614,300 9,761,950 9,605,480 197 210 VILLAGE OF MOUNT PROSPECT, ILLINOIS Vehicle Replacement - Internal Service Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual For the Fiscal Year Ended December 31, 2021 Operating Revenues Charges for Services Operating Expenses Administration Depreciation Total Operating Expenses Operating Income Nonoperating Revenues (Expenses) Disposal of Capital Assets Interest Income Change in Net Position Net Position - Beginning Net Position - Ending Budget Original Final Actual $ 2,034,860 2,034,860 2,035,158 2,159 1,109,297 1,111,456 2,034,860 2,034,860 923,702 20,996 85,000 85,000 (83,454) 85,000 85,000 (62,458) 2,119,860 2,119,860 861,244 18,640,553 19,501,797 198 211 VILLAGE OF MOUNT PROSPECT, ILLINOIS Vehicle Replacement - Internal Service Fund Schedule of Operating Revenues - Budget and Actual For the Fiscal Year Ended December 31, 2021 Charges for Services General Fund Manager's Office Community Development - Planning Community Development - Building Community Development - Housing Community Development - Health Police Department Fire Department Public Works Department Engineering Division Water and Sewer Fund Other Fees Budget Original Final Actual $ 4,230 4,230 4,230 1,500 1,500 1,500 4,300 4,300 4,300 8,180 8,180 8,180 1,500 1,500 1,500 358,880 358,880 358,880 646,340 646,340 646,340 544,060 544,060 544,060 13,430 13,430 13,430 452,440 452,440 452,440 298 Total Operating Revenues 2,034,860 2,034,860 2,035,158 199 212 VILLAGE OF MOUNT PROSPECT, ILLINOIS Vehicle Replacement - Internal Service Fund Schedule of Operating Expenses - Budget and Actual For the Fiscal Year Ended December 31, 2021 Administration Capital Outlay Police Vehicles Fire Vehicles Public Works Village Administration Vehicles Total Capital Outlay Less Capital Assets Capitalized Total Administration Depreciation Total Operating Expenses 200 Budget Original Final Actual $ 145,000 119,671 118,658 1,005,000 983,756 983,756 342,000 599,119 574,978 — 15,000 — 1,492,000 1,717,546 1,677,392 (1,492,000) (1,717,546) (1,675,233) 2,159 1,109,297 1,111,456 213 VILLAGE OF MOUNT PROSPECT, ILLINOIS Vehicle Maintenance - Internal Service Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual For the Fiscal Year Ended December 31, 2021 Operating Revenues Charges for Services Operating Expenses Administration and Maintenance Operating Income Nonoperating Revenues Disposal of Capital Assets Interest Income Change in Net Position Net Position - Beginning Net Position - Ending Budget Original Final Actual $ 2,357,844 2,357,844 2,357,844 2,305,315 2,305,315 2,016,639 52,529 52,529 341,205 6,081 1,315 1,315 140 1,315 1,315 6,221 53,844 53,844 347,426 702,484 1,049,910 201 214 VILLAGE OF MOUNT PROSPECT, ILLINOIS Vehicle Maintenance - Internal Service Fund Schedule of Operating Revenues - Budget and Actual For the Fiscal Year Ended December 31, 2021 Charges for Services General Fund Manager's Office Television Services Division Community Development - Planning Community Development - Building Community Development - Housing Community Development - Health Police Department Fire Department Public Works Department Engineering Division Human Service Charges Water and Sewer Fund Budget Original Final Actual $ 3,537 3,537 3,537 3,773 3,773 3,773 3,537 3,537 3,537 4,951 4,951 4,951 24,757 24,757 24,757 3,537 3,537 3,537 600,543 600,543 600,543 372,775 372,775 372,775 733,760 733,760 733,760 38,433 38,433 38,433 3,537 3,537 3,537 564,704 564,704 564,704 Total Operating Revenues 2,357,844 2,357,844 2,357,844 202 215 VILLAGE OF MOUNT PROSPECT, ILLINOIS Vehicle Maintenance - Internal Service Fund Schedule of Operating Expenses - Budget and Actual For the Fiscal Year Ended December 31, 2021 Administration and Maintenance Vehicle Division Administration Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Office Equipment Insurance Total Vehicle Division Administration Vehicle Maintenance Program Personal Services Employee Benefits Contractual Services Commodities and Supplies Other Equipment Total Vehicle Maintenance Program Budget Original Final Actual $ 128,959 128,959 91,293 62,855 62,855 8,235 7,250 7,250 3,772 23,699 36,750 36,445 4,500 4,500 3,261 2,406 6,515 1,806 626 626 - 11,202 11,202 11,202 241,497 258,657 156,014 990,749 990,749 827,907 365,352 365,352 356,739 101,478 101,478 71,936 603,855 587,695 603,174 2,384 1,384 869 2,063,818 2,046,658 1,860,625 Total Operating Expenses 2,305,315 2,305,315 2,016,639 203 216 PENSION TRUST FUNDS Police Pension Fund: The Police Pension Fund is used to account for the resources necessary to provide retirement and disability benefits to personnel of the Mount Prospect Police Department. Revenues are provided by the following: Village contributions (made possible by a property tax levy), employee withholdings and investment income. Firefighters' Pension Fund: The Firefighters' Pension Fund is used to account for the resources necessary to provide retirement and disability benefits to personnel of the Mount Prospect Fire Department. Revenues are provided by the following: Village contributions (made possible by a property tax levy), employee withholdings and investment income. 204 217 VILLAGE OF MOUNT PROSPECT, ILLINOIS Pension Trust Funds Combining Statement of Fiduciary Net Position December 31, 2021 ASSETS Cash and Cash Equivalents Investments U.S. Government Obligations U.S. Agency Obligations State and Local Obligations Corporate Bonds Real Estate Mutual Funds Receivables - Net of Allowance Accrued Interest Due from Other Funds Prepaids Total Assets LIABILITIES Accounts Payable NET POSITION Net Position Restricted for Pensions Police Firefighters' Pension Pension Totals $ 3,373,305 4,712,777 8,086,082 3,921,780 8,034,942 11,956,722 15,444,450 10,176,391 25,620,841 4,886,907 416,890 5,303,797 6,236,889 10,318,952 16,555,841 — 7,920,247 7,920,247 62,510,528 43,346,493 105,857,021 123,665 133,639 257,304 20,634 18,457 39,091 795 2,334 3,129 96,518,953 44,621 85,081,122 181,600,075 63,894 108,515 96,474,332 85,017,228 181,491,560 205 218 VILLAGE OF MOUNT PROSPECT, ILLINOIS Pension Trust Funds Combining Statement of Changes in Fiduciary Net Position For the Fiscal Year Ended December 31, 2021 Additions Contributions - Employer Contributions - Plan Members Total Contributions Investment Earnings Interest Earned Net Change in Fair Value Less Investment Expenses Net Investment Income Total Additions Deductions Administration Benefits and Refunds Total Deductions Change in Fiduciary Net Position Net Position Restricted for Pensions Beginning Ending 206 Police Firefighters' Pension Pension Totals $ 3,977,102 3,651,864 7,628,966 887,126 782,338 1,669,464 4,864,228 4,434,202 9,298,430 36 913 949 11,420,305 7,136,408 18,556,713 11,420,341 7,137,321 18,557,662 (139,742) (115,493) (255,235) 11,280,599 7,021,828 18,302,427 16,144,827 11,456,030 27,600,857 60,168 109,735 169,903 6,518,558 6,788,536 13,307,094 6,578,726 6,898,271 13,476,997 9,566,101 4,557,759 14,123, 860 86,908,231 80,459,469 167,367,700 96,474,332 85,017,228 181,491,560 219 VILLAGE OF MOUNT PROSPECT, ILLINOIS Consolidated Year -End Financial Report December 31, 2021 CSFA # Program Name State Federal Other Total 420-00-1992 Purchase and Installation of a Back-up Generator for a Levee $ 14,160 494-00-1488 Motor Fuel Tax 1,446,295 494-00-2356 Rebuild Illinois Local Bond Program 1,189,939 Other Grant Programs and Activities — All Other Costs Not Allocated — 804,266 3,089,566 — 74,971,591 14,160 1,446,295 1,189,939 3,893,832 74,971,591 2,650,394 804,266 78,061,157 81,515,817 207 220 SUPPLEMENTAL SCHEDULES 208 221 VILLAGE OF MOUNT PROSPECT, ILLINOIS Schedule of General Long -Term Debt Long -Term Debt Payable by Governmental Funds December 31, 2021 See Following Page 209 222 VILLAGE OF MOUNT PROSPECT, ILLINOIS Schedule of General Long -Term Debt Long -Term Debt Payable by Governmental Funds December 31, 2021 General General General General General General General Obligation Obligation Obligation Obligation Obligation Obligation Obligation Bonds of Bonds of Bonds of Bonds of Bonds of Bonds of Bonds of 2012 2013 2014 2016 2016A 2017 2018A AMOUNTS TO BE PROVIDED FOR THE RETIREMENT OF GENERAL LONG- TERM DEBT $ 885,000 8,675,000 2,390,000 1,550,000 8,860,000 4,675,000 6,880,000 GENERAL LONG-TERM DEBT PAYABLE General Obligation Bonds Payable $ 885,000 8,675,000 2,390,000 1,550,000 8,860,000 4,675,000 6,880,000 Business District Limited Tax Note Payable Compensated Absences Payable Net Pension Liability - Police Pension Net Pension Liability - Firefighters' Pension Total OPEB Liability - RBP Unamortized Bond Premium — Totals 885,000 8,675,000 2,390,000 1,550,000 8,860,000 4,675,000 6,880,000 210 223 General General Business Net Net Obligation Obligation District Pension Pension Total Unamortized Bonds of Bonds of Limited Tax Compensated Liability Liability OPEB Bond 2018B 2019B Note Absences Police Firefighters Liability Premiums Totals 37,225,000 7,725,000 36,730,522 4,127,686 45,236,365 40,010,412 13,202,443 2,418,168 217,912,281 37,225,000 7,725,000 78,865,000 — — 36,730,522 — — — — — 36,730,522 — 4,127,686 — — — — 4,127,686 — 45,236,365 — — — 45,236,365 — 40,010,412 — — 40,010,412 — 13,202,443 — 13,202,443 2,418,168 2,418,168 37,225,000 7,725,000 36,730,522 4,127,686 45,236,365 40,010,412 13,202,443 2,418,168 220,590,596 211 224 VILLAGE OF MOUNT PROSPECT, ILLINOIS Long -Term Debt Requirements General Obligation Bonds of 2012 December 31, 2021 Date of Issue Date of Maturity Authorized Issue Denomination of Bonds Interest Rate Interest Dates Principal Maturity Date Payable at January 3, 2012 December 1, 2022 $2,975,000 $5,000 3.10% June 1 and December 1 December 1 JP Morgan Chase CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Fiscal Requirements Interest Due On Year Principal Interest Totals Jun.l Amount Dec.I Amount 2022 $ 885,000 27,436 912,436 2022 13,718 2022 13,718 212 225 VILLAGE OF MOUNT PROSPECT, ILLINOIS Long -Term Debt Requirements General Obligation Bonds of 2013 December 31, 2021 Date of Issue Date of Maturity Authorized Issue Denomination of Bonds Interest Rates Interest Dates Principal Maturity Date Payable at September 10, 2013 December 1, 2033 $9,800,000 $5,000 3.000% to 4.125% June 1 and December 1 December 1 The Bank of New York Mellon Trust Company CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Fiscal Requirements Interest Due On Year Principal Interest Totals Jun.I Amount Dec.I Amount 2022 $ 585,000 336,206 921,206 2022 168,103 2022 168,103 2023 605,000 318,656 923,656 2023 159,328 2023 159,328 2024 625,000 300,506 925,506 2024 150,253 2024 150,253 2025 650,000 275,506 925,506 2025 137,753 2025 137,753 2026 675,000 249,506 924,506 2026 124,753 2026 124,753 2027 700,000 222,506 922,506 2027 111,253 2027 111,253 2028 730,000 194,506 924,506 2028 97,253 2028 97,253 2029 760,000 165,307 925,307 2029 82,653 2029 82,654 2030 790,000 134,907 924,907 2030 67,453 2030 67,454 2031 820,000 103,307 923,307 2031 51,653 2031 51,654 2032 850,000 70,507 920,507 2032 35,253 2032 35,254 2033 885,000 36,507 921,507 2033 18,253 2033 18,254 8,675,000 2,407,927 11,082,927 1,203,961 1,203,966 213 226 VILLAGE OF MOUNT PROSPECT, ILLINOIS Long -Term Debt Requirements General Obligation Bonds of 2014 December 31, 2021 Date of Issue Date of Maturity Authorized Issue Denomination of Bonds Interest Rate Interest Dates Principal Maturity Date Payable at February 4, 2014 December 1, 2023 $6,290,000 $5,000 3.00% June 1 and December 1 December 1 The Bank of New York Mellon Trust Company CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Fiscal Requirements Interest Due On Year Principal Interest Totals Jun.l Amount Dec.I Amount 2022 $ 1,125,000 71,700 1,196,700 2022 35,850 2022 35,850 2023 1,265,000 37,950 1,302,950 2023 18,975 2023 18,975 2,390,000 109,650 2,499,650 54,825 54,825 214 227 VILLAGE OF MOUNT PROSPECT, ILLINOIS Long -Term Debt Requirements General Obligation Refunding Bonds of 2016 December 31, 2021 Date of Issue Date of Maturity Authorized Issue Denomination of Bonds Interest Rates Interest Dates Principal Maturity Date Payable at September 8, 2016 December 1, 2022 $8,735,000 $5,000 2.00% to 3.00% June 1 and December I December 1 Zions Bancorporation CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Fiscal Requirements Interest Due On Year Principal Interest Totals Jun.I Amount Dec.I Amount 2022 $ 1,550,000 31,000 1,581,000 2022 15,500 2022 15,500 215 228 VILLAGE OF MOUNT PROSPECT, ILLINOIS Long -Term Debt Requirements General Obligation Refunding Bonds of 2016A December 31, 2021 Date of Issue Date of Maturity Authorized Issue Denomination of Bonds Interest Rate Interest Dates Principal Maturity Date Payable at December 1, 2016 December 1, 2028 $9,100,000 $5,000 3.00% June 1 and December 1 December 1 Zions Bancorporation CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Fiscal Requirements Interest Due On Year Principal Interest Totals Jun.I Amount Dec.I Amount 2022 $ — 265,800 265,800 2022 132,900 2022 132,900 2023 515,000 265,800 780,800 2023 132,900 2023 132,900 2024 1,060,000 250,350 1,310,350 2024 125,175 2024 125,175 2025 1,740,000 218,550 1,958,550 2025 109,275 2025 109,275 2026 1,795,000 166,350 1,961,350 2026 83,175 2026 83,175 2027 1,845,000 112,500 1,957,500 2027 56,250 2027 56,250 2028 1,905,000 57,150 1,962,150 2028 28,575 2028 28,575 8,860,000 1,336,500 10,196,500 668,250 668,250 216 229 VILLAGE OF MOUNT PROSPECT, ILLINOIS Long -Term Debt Requirements General Obligation Bonds of 2017 December 31, 2021 Date of Issue Date of Maturity Authorized Issue Denomination of Bonds Interest Rates Interest Dates Principal Maturity Date Payable at December 20, 2017 December 1, 2037 $9,740,000 $5,000 2.50% to 4.00% June 1 and December 1 December 1 Zions Bancorporation CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Fiscal Requirements Interest Due On Year Principal Interest Totals Jun.I Amount Dec.l Amount 2022 $ 315,000 298,300 613,300 2022 149,150 2022 149,150 2023 345,000 285,700 630,700 2023 142,850 2023 142,850 2024 375,000 271,900 646,900 2024 135,950 2024 135,950 2025 405,000 256,900 661,900 2025 128,450 2025 128,450 2026 440,000 240,700 680,700 2026 120,350 2026 120,350 2027 465,000 227,500 692,500 2027 113,750 2027 113,750 2028 500,000 215,876 715,876 2028 107,938 2028 107,938 2029 530,000 202,750 732,750 2029 101,375 2029 101,375 2030 565,000 188,174 753,174 2030 94,087 2030 94,087 2031 600,000 171,932 771,932 2031 85,966 2031 85,966 2032 640,000 147,932 787,932 2032 73,966 2032 73,966 2033 690,000 122,332 812,332 2033 61,166 2033 61,166 2034 730,000 100,770 830,770 2034 50,385 2034 50,385 2035 775,000 77,956 852,956 2035 38,978 2035 38,978 2036 820,000 53,738 873,738 2036 26,869 2036 26,869 2037 865,000 28,112 893,112 2037 14,056 2037 14,056 9,060,000 2,890,572 11,950,572 4,675,000 Governmental Activities 4,385,000 Business -Type Activities 9,060,000 1,445,286 1,445,286 217 230 VILLAGE OF MOUNT PROSPECT, ILLINOIS Long -Term Debt Requirements General Obligation Bonds of 2018A December 31, 2021 Date of Issue Date of Maturity Authorized Issue Denomination of Bonds Interest Rates Interest Dates Principal Maturity Date Payable at May 1, 2018 December 1, 2037 $11,950,000 $5,000 3.25% to 5.00% June 1 and December 1 December 1 Zions Bancorporation CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Fiscal Requirements Interest Due On Year Principal Interest Totals Jun.l Amount Dec.l Amount 2022 $ 355,000 432,368 787,368 2022 216,184 2022 216,184 2023 385,000 414,618 799,618 2023 207,309 2023 207,309 2024 425,000 395,368 820,368 2024 197,684 2024 197,684 2025 470,000 374,118 844,118 2025 187,059 2025 187,059 2026 520,000 350,618 870,618 2026 175,309 2026 175,309 2027 565,000 324,618 889,618 2027 162,309 2027 162,309 2028 610,000 302,018 912,018 2028 151,009 2028 151,009 2029 655,000 277,618 932,618 2029 138,809 2029 138,809 2030 710,000 251,418 961,418 2030 125,709 2030 125,709 2031 765,000 223,018 988,018 2031 111,509 2031 111,509 2032 815,000 198,156 1,013,156 2032 99,078 2032 99,078 2033 870,000 171,668 1,041,668 2033 85,834 2033 85,834 2034 925,000 141,220 1,066,220 2034 70,610 2034 70,610 2035 985,000 108,844 1,093,844 2035 54,422 2035 54,422 2036 1,050,000 75,600 1,125,600 2036 37,800 2036 37,800 2037 1,110,000 38,850 1,148,850 2037 19,425 2037 19,425 11,215,000 4,080,118 15,295,118 6,880,000 Governmental Activities 4,335,000 Business -Type Activities 11,215,000 2,040,059 2,040,059 218 231 VILLAGE OF MOUNT PROSPECT, ILLINOIS Long -Term Debt Requirements General Obligation Bonds of 2018B December 31, 2021 Date of Issue Date of Maturity Authorized Issue Denomination of Bonds Interest Rates Interest Dates Principal Maturity Date Payable at October 16, 2018 December 1, 2043 $38,440,000 $5,000 3.625% to 5.000% June 1 and December 1 December 1 Zions Bancorporation CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Fiscal Requirements Interest Due On Year Principal Interest Totals Jun.I Amount Dec.I Amount 2022 $ - 1,568,750 1,568,750 2022 784,375 2022 784,375 2023 - 1,568,750 1,568,750 2023 784,375 2023 784,375 2024 770,000 1,568,750 2,338,750 2024 784,375 2024 784,375 2025 155,000 1,530,250 1,685,250 2025 765,125 2025 765,125 2026 160,000 1,522,500 1,682,500 2026 761,250 2026 761,250 2027 165,000 1,514,500 1,679,500 2027 757,250 2027 757,250 2028 175,000 1,506,250 1,681,250 2028 753,125 2028 753,125 2029 1,645,000 1,497,500 3,142,500 2029 748,750 2029 748,750 2030 1,820,000 1,415,250 3,235,250 2030 707,625 2030 707,625 2031 1,910,000 1,324,250 3,234,250 2031 662,125 2031 662,125 2032 2,005,000 1,228,750 3,233,750 2032 614,375 2032 614,375 2033 2,105,000 1,128,500 3,233,500 2033 564,250 2033 564,250 2034 2,210,000 1,023,250 3,233,250 2034 511,625 2034 511,625 2035 2,295,000 943,138 3,238,138 2035 471,569 2035 471,569 2036 2,380,000 857,075 3,237,075 2036 428,538 2036 428,537 2037 2,470,000 767,825 3,237,825 2037 383,913 2037 383,912 2038 2,560,000 675,200 3,235,200 2038 337,600 2038 337,600 2039 2,660,000 576,000 3,236,000 2039 288,000 2039 288,000 2040 2,765,000 469,600 3,234,600 2040 234,800 2040 234,800 2041 2,875,000 359,000 3,234,000 2041 179,500 2041 179,500 2042 2,990,000 244,000 3,234,000 2042 122,000 2042 122,000 2043 3,110,000 124,400 3,234,400 2043 62,200 2043 62,200 37,225,000 23,413,488 60,638,488 11,706,745 11,706,743 219 232 VILLAGE OF MOUNT PROSPECT, ILLINOIS Long -Term Debt Requirements General Obligation Bonds of 2019A December 31, 2021 Date of Issue Date of Maturity Authorized Issue Denomination of Bonds Interest Rates Interest Dates Principal Maturity Date Payable at June 3, 2019 December 1, 2039 $9,600,000 $5,000 2.00% to 5.00% June 1 and December 1 December 1 Zions Bancorporation CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Fiscal Requirements Interest Due On Year Principal Interest Totals Jun.l Amount Dec.l Amount 2022 $ 265,000 325,800 590,800 2022 162,900 2022 162,900 2023 290,000 312,550 602,550 2023 156,275 2023 156,275 2024 315,000 298,050 613,050 2024 149,025 2024 149,025 2025 345,000 282,300 627,300 2025 141,150 2025 141,150 2026 375,000 265,050 640,050 2026 132,525 2026 132,525 2027 405,000 246,300 651,300 2027 123,150 2027 123,150 2028 435,000 230,100 665,100 2028 115,050 2028 115,050 2029 465,000 212,700 677,700 2029 106,350 2029 106,350 2030 495,000 194,100 689,100 2030 97,050 2030 97,050 2031 525,000 179,250 704,250 2031 89,625 2031 89,625 2032 555,000 163,500 718,500 2032 81,750 2032 81,750 2033 585,000 146,850 731,850 2033 73,425 2033 73,425 2034 620,000 129,300 749,300 2034 64,650 2034 64,650 2035 655,000 110,700 765,700 2035 55,350 2035 55,350 2036 685,000 91,050 776,050 2036 45,525 2036 45,525 2037 725,000 70,500 795,500 2037 35,250 2037 35,250 2038 760,000 48,750 808,750 2038 24,375 2038 24,375 2039 800,000 25,000 825,000 2039 12,500 2039 12,500 9,300,000 3,331,850 12,631,850 1,665,925 1,665,925 220 233 VILLAGE OF MOUNT PROSPECT, ILLINOIS Long -Term Debt Requirements General Obligation Bonds of 2019B December 31, 2021 Date of Issue Date of Maturity Authorized Issue Denomination of Bonds Interest Rates Interest Dates Principal Maturity Date Payable at November 25, 2019 December 1, 2039 $7,725,000 $5,000 3.00% to 5.00% June 1 and December 1 December 1 Zions Bancorporation CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Fiscal Requirements Interest Due On Year Principal Interest Totals Jun.l Amount Dec.l Amount 2022 $ - 265,350 265,350 2022 132,675 2022 132,675 2023 210,000 265,350 475,350 2023 132,675 2023 132,675 2024 235,000 254,850 489,850 2024 127,425 2024 127,425 2025 260,000 243,100 503,100 2025 121,550 2025 121,550 2026 290,000 230,100 520,100 2026 115,050 2026 115,050 2027 320,000 215,600 535,600 2027 107,800 2027 107,800 2028 350,000 199,600 549,600 2028 99,800 2028 99,800 2029 380,000 185,600 565,600 2029 92,800 2029 92,800 2030 415,000 170,400 585,400 2030 85,200 2030 85,200 2031 445,000 157,950 602,950 2031 78,975 2031 78,975 2032 475,000 144,600 619,600 2032 72,300 2032 72,300 2033 510,000 130,350 640,350 2033 65,175 2033 65,175 2034 545,000 115,050 660,050 2034 57,525 2034 57,525 2035 580,000 98,700 678,700 2035 49,350 2035 49,350 2036 615,000 81,300 696,300 2036 40,650 2036 40,650 2037 655,000 62,850 717,850 2037 31,425 2037 31,425 2038 700,000 43,200 743,200 2038 21,600 2038 21,600 2039 740,000 22,200 762,200 2039 11,100 2039 11,100 7,725,000 2,886,150 10,611,150 1,443,075 1,443,075 221 234 STATISTICAL SECTION (Unaudited) This part of the annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the Village's overall financial health. Financial Trends These schedules contain trend information to help the reader understand how the Village's financial performance and well-being have changed over time. Revenue Capacity These schedules contain information to help the reader assess the Village's most significant local revenue sources. Debt Capacity These schedules present information to help the reader assess the affordability of the Village's current levels of outstanding debt and the government's ability to issue additional debt in the future. Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the Village's financial activities take place. Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the Village's financial report relates to the services the Village provides and the activities it perforans. 222 235 VILLAGE OF MOUNT PROSPECT, ILLINOIS Net Position by Component - Last Ten Fiscal Years* December 31, 2021 (Unaudited) See Following Page 223 236 VILLAGE OF MOUNT PROSPECT, ILLINOIS Net Position by Component - Last Ten Fiscal Years* December 31, 2021 (Unaudited) Governmental Activities Net Investment in Capital Assets Restricted Unrestricted Total Governmental Activities Net Position Business -Type Activities Net Investment in Capital Assets Unrestricted Total Business -Type Activities Net Position Primary Government Net Investment in Capital Assets Restricted Unrestricted Total Primary Government Net Position Data Source: Audited Financial Statements 2012 2013 2014 (1) $ 48,521,357 48,152,760 46,326,047 3,547,328 3,045,922 4,186,505 24,952,139 24,153,907 (10,441,020) 77,020,824 75,352,589 40,071,532 26,566,375 26,352,289 26,854,967 6,820,901 8,057,996 7,734,851 33,387,276 34,410,285 34,589,818 75,087,732 74,505,049 73,181,014 3,547,328 3,045,922 4,186,505 31,773,040 32,211,903 (2,706,169) 110,408,100 109,762,874 74,661,350 (1) The unrestricted net position decreased in 2014 due to the recognition of the business district limited tax note payable. (2) The Village implemented GASB Statement No. 68 in fiscal year 2015. (3) The Village implemented GASB Statement No. 75 for fiscal year 2018. * Accrual Basis of Accounting 224 237 2015 (2) 2016 2017 2018 (3) 2019 2020 2021 43,755,661 33,224,875 34,171,129 30,192,091 31,568,036 26,448,689 38,294,932 5,319,794 4,557,424 4,104,560 7,065,413 8,691,355 5,811,511 7,199,628 (99,563,419) (91,778,462) (95,150,426) (107,779,949) (107,707,787) (90,600,371) (75,314,733) (50,487,964) (53,996,163) (56,874,737) (70,522,445) (67,448,396) (58,340,171) (29,820,173) 36,336,899 36,588,628 35,765,755 32,472,358 33,196,889 20,547,932 29,676,988 5,580,049 4,610,400 6,266,907 8,411,004 5,924,760 17,346,891 15,780,856 41,916,948 41,199,028 42,032,662 40,883,362 39,121,649 37,894,823 45,457,844 80,092,560 69,813,503 69,936,884 62,664,449 64,764,925 46,996,621 67,971,920 5,319,794 4,557,424 4,104,560 7,065,413 8,691,355 5,811,511 7,199,628 (93,983,370) (87,168,062) (88,883,519) (99,368,945) (101,783,027) (73,253,480) (59,533,877) (8,571,016) (12,797,135) (14,842,075) (29,639,083) (28,326,747) (20,445,348) 15,637,671 225 238 M N z N N In x - N 11 -1 N r` n 10 - rn ll M a - C co oo 7 a �D U N vi V V V --� m vi vi vi r- In O 'A N a In O a Vl O a a l0 V1 l� lG lC O V1 O JO M lD to M O l� a N l� 00 Vl l� 00 N l� a M Vl M O 00 a O O a o0 00 O C a 7 a 7 Vl M V) 00 m N N x N xN 'T l� a lU JO 00 l� 1p M N Vl N I, N l0 l0 -t V1 M O M O a •--� cF M M n l0 l� l� Vl N 00 O lU 00 l� In M l� V1 , O a V V' lC M C O C a a a In lO am M V N Xl C a a M N N r` N r` N r` C CC l� l0 v1 l� oC O M V r Vl 1p 7 M I N C -- i G c� N O U ,� O O C� C,' to �y ❑ In V1 R ,+ca U O U CS G i .o. ttl O O O bAF. C M V M V Vl M �D l� M lfl N V lO N V l� O Vl a vl oF-- L) V O oo M r` a M oo lb l� oC O x V N In M l^. V� a N M V V 1� m c o m cy �n llc vl m a c _ l� a O a` c co x N to cn m a ri z In N a O N rn 11 m V V GO N N m N O o lC 7 V 00 a n - a � a N _ 7 M M In 17 In O U\ a m a l0 Vl a V O M 7 00 7 l� s N N n lC O M M a M N -- �n a M In N o v y oo o_ a s o o a lc v 1n v oc vi o0 a _ lc a -T a, -T 7 V1 O 00 M fn V O M Q; M M 00 lq m � lC G1 l✓ VM 1 v1 V1 l0 M V1 Vl 1p Do V o l� �n V iD N V 00 a V1 V a l� 00 1p e'F �--i a oc M lfl W V N oo OC V1 .- r- N O W co N vt C l0 Vl l0 m --i V m CC Vl N_ 7 l0 , O CO �O 00 7 V' a M (K M 00 00 a Ol N_ M 7 Vl a 00 a a a M CC oG a V1 a ll V JC 10 ll l- a N M Vl N M O a a Inr` M o0 N O N O o0 N lD N lD Vl Vl lfl 4n N O a �o M lC lC Co ID V b M M C lD a lC lD lG M G; vi vi M N lG G� V N m o M N z N N U N i G c� N O U ,� O O C� C,' to �y ❑ bA ,L R ,+ca U O U CS G i .o. ttl O O O bAF. F1 oF-- L) w a M N z N N In N o0 oC h r h� O M N M �p M O al Oh O M d= M C1 00 M 01 N ~ N Vl O N'V" N Vl r l� N M ,co� I d NA C n N W ll Cl r1l In C, �C �O a\ r; vi N •t vi N r. N C1 1 r r d' d- 'v 1 O\ of O o1 C M N r r (YJ M O V Vl Vt N lC In M V N In N d- - M. - M, ti � 00 In o m_ v oc vO oo v v lc� N In M M M O rr: In M r v, N �O O N M M N V V V O, 00 N d' O\ V1 d' V1 M N O. Q\ r O rC N -- O 00 W lr0 V •-� W ITA 7 O 00 r M M O1 M r M M O m In V M ut V I� a' I Vr M d- r T d' V1 M d' V1 N r In O, 1 O In 11 Cyl N M 00 M V1 N � V1 v c � r sN I IIMI�I �.� V1I�OI � M G d' Vl N N G Vl OOi V o0 v� In In In V M In V r O` oo oo o r" r O r vt � " x O O � V vj G N N 00 N o r N V1 r M lC O r O vl W m c Go V': oG O r r a W V vl vl N W 'A v) M o IlxMll�� nW V1I�OI � M G d' Vl N N G Vl OOi V o0 v� In In In V M In V r O` oo oo o r" r O r vt � " x O O � V vj G N 00 N o r N V1 r M lC O r O vl W m c Go V': oG O r r a W V vl vl N W 'A v) M o IlxMll�� nW N' N t � V1I�OI � M G d' Vl N N G Vl OOi V o0 v� In In In V M In V r O` oo oo o r" r O r vt � " x O O � V vj G d' N VJ [ -�- "� i Q; x vl W m c Go V': oG O r r a W V vl vl N W 'A v) vi Dy C` o r nW � O O . w a z z a R u y lu O � � � Q G N y m � N U' •�"• CIO 17 C-5 -2 R t F En N •�'+ °J o U U` F W 0�.. Z aj Fri toI y �? C `� �.r R N .. N cr, �' Ri .. uJ w G h a � •-• o F y o F F CAa x CA HF- �, 0 IV N N N VILLAGE OF MOUNT PROSPECT, ILLINOIS Fund Balances of Governmental Funds - Last Ten Fiscal Years* December 31, 2021 (Unaudited) General Fund Nonspendable Committed Assigned Unassigned Total General Fund All Other Governmental Funds Nonspendable Restricted Committed Assigned Unassigned Total All Other Governmental Funds Total Fund Balances Data Source: Audited Financial Statements *Modified Accrual Basis of Accounting 2012 2013 2014 $ 98,150 11,466,179 297,762 11,580,820 337,165 12,508,457 11,564,329 11,878,582 12,845,622 144,114 132,464 147,412 3,625,715 3,166,583 13,941,797 7,525,930 15,705,506 7,371,630 (664) (689) (789) 11,295,095 19,003,864 21,460,050 22,859,424 30,882,446 34,305,672 228 241 2015 2016 2017 2018 2019 2020 2021 204,023 188,247 261,219 220,065 370,162 381,902 342,372 - - - - 3,393,000 2,300,000 - 3,700,000 17,016,920 18,496,104 19,137,752 22,837,502 22,914,986 23,492,469 30,752,940 17,220,943 18,684,351 19,398,971 23,057,567 26,678,148 26,174,371 34,795,312 107,609 96,771 83,232 74,703 100,288 108,495 79,781 5,212,985 4,557,424 8,919,560 39,339,578 28,845,580 6,071,511 7,448,334 934,034 1,012,349 3,679,129 3,224,446 3,579,214 7,182,152 7,245,942 7,150,936 8,157,144 (448,034) (688,716) 8,120 8,551,689 7,189,925 12,582,006 46,596,433 36,191,810 14,264,976 16,705,728 25,772,632 25,874,276 31,980,977 69,654,000 62,869,958 40,439,347 51,501,040 229 242 VILLAGE OF MOUNT PROSPECT, ILLINOIS Changes in Fund Balances for Governmental Funds - Last Ten Fiscal Years* December 31, 2021 (Unaudited) Revenues Taxes Intergovernmental Licenses, Permits, and Fees Charges for Services Fines and Forfeitures Interest Other Reimbursements Miscellaneous Total Revenues Expenditures General Government Public Safety Highways and Streets Health Welfare Culture and Recreation Capital Outlay Debt Service Principal Retirement Interest and Fiscal Charges Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses) Disposal of Capital Assets Debt Issuance Premium on Debt Issuance Payment to Escrow Agent Transfers In Transfers Out Net Change in Fund Balances Debt Service as a Percentage of Noncapital Expenditures Data Source: Audited Financial Statements *Modified Accrual Basis of Accounting 2012 2013 2014 28,022,943 29,233,562 30,706,685 $ 30,485,689 31,088,445 32,564,624 18,862,827 21,103,909 23,914,974 3,657,586 3,589,368 3,516,082 4,417,110 4,408,987 5,220,730 403,036 430,960 587,966 36,491 16,751 (46,495) 629,892 1,167,196 983,623 58,492,631 61,805,616 66,741,504 5,827,275 7,452,147 7,050,018 28,022,943 29,233,562 30,706,685 7,734,185 9,094,846 8,291,698 4,405,184 4,457,548 4,590,027 1,909,062 1,868,952 1,865,265 399,366 435,931 421,517 4,761,739 8,588,414 12,075,460 1,479,732 959,812 1,537,312 913,882 2,987,587 1,914,718 55,499,298 63,582,594 69,902,975 2,993,333 (1,776,978) (3,161,471) 5,475,000 9,800,000 6,290,000 294,697 (2,949,150) 239,977 - - (239,977) — 2,525,850 9,800,000 6,584,697 5,519,183 8,023,022 3,423,226 4.40% 4.01% 7.02% 230 243 2015 2016 2017 2018 2019 2020 2021 33,433,891 34,113,260 31,784,137 33,080,547 32,718,562 31,600,945 34,781,161 26,018,173 27,434,551 29,199,312 32,811,854 34,650,218 36,297,359 46,969,768 3,915,635 4,001,458 3,982,497 4,085,141 4,249,613 3,816,507 3,913,269 5,664,398 6,347,775 5,810,731 5,834,187 6,267,680 6,785,463 7,967,914 511,536 414,884 415,189 403,842 286,328 242,004 445,604 24,784 76,594 196,995 675,700 1,375,199 234,783 986 - 35,000 19,824 112,429 31,204 - - 656,877 549,816 592,352 1,660,393 621,494 2,089,687 1,798,702 70,225,294 72,973,338 72,001,037 78,664,093 80,200,298 81,066,748 95,877,404 7,598,649 9,435,601 10,060,904 9,566,297 9,384,171 8,044,415 8,079,371 30,350,270 32,512,612 34,279,062 36,287,527 36,783,615 37,584,244 38,791,777 7,744,122 8,148,696 8,762,136 9,658,459 10,456,537 10,576,961 12,006,572 4,589,156 4,585,572 4,500,280 4,835,310 4,849,613 4,793,171 4,985,328 1,961,516 1,994,918 1,953,055 1,798,458 1,676,723 1,824,289 2,126,344 467,611 499,208 585,907 572,169 388,375 166,740 306,890 20,998,508 10,718,553 5,786,667 15,245,784 26,616,871 33,239,574 11,101,659 3,048,912 3,243,840 3,518,904 3,671,871 3,787,500 4,015,000 4,590,000 1,799,590 2,017,192 1,378,256 2,484,885 3,409,229 3,253,348 3,123,295 78,558,334 73,156,192 70,825,171 84,120,760 97,352,634 103,497,742 85,111,236 (8,333,040) (182,854) 1,175,866 (5,456,667) (17,152,336) (22,430,994) 10,766,168 (8,533,040) 101,643 6,106,701 37,673,023 (6,847,042) (22,430,611) 11,061,693 6.20% 7.32% 6.99% 8.00% 9.60% 9.46% 10.72% 231 244 646,600 383 295,525 - 17,835,000 4,815,000 45,500,000 7,725,000 - - - 1,022,839 115,835 1,783,506 394,075 - - - (18,573,342) - (4,153,816) - - - 81,599 1,637,926 600,000 2,354,391 3,709,981 5,188,000 4,544,819 (281,599) (1,637,926) (600,000) (2,354,391) (2,170,362) (5,188,000) (4,544,819) (200,000) 284,497 4,930,835 43,129,690 10,305,294 383 295,525 (8,533,040) 101,643 6,106,701 37,673,023 (6,847,042) (22,430,611) 11,061,693 6.20% 7.32% 6.99% 8.00% 9.60% 9.46% 10.72% 231 244 VILLAGE OF MOUNT PROSPECT, ILLINOIS Assessed Value and Actual Value of Taxable Property - Last Ten Tax Levy Years December 31, 2021 (Unaudited) Tax Levy Residential Commercial Industrial Railroad Year Property Property Property Property 2011 $ 1,242,549,785 $ 298,578,904 $ 152,864,606 $ 959,506 2012 1,141,783,464 281,197,939 145,136,294 656,385 2013 948,371,026 272,696,503 135,438,749 787,806 2014 989,619,882 285,736,126 114,184,895 836,775 2015 962,934,812 279,463,359 111,147,033 1,005,644 2016 1,191,992,297 304,999,806 121,128,843 1,037,906 2017 1,185,479,107 321,277,244 162,946,209 1,022,879 2018 1,171,019,649 326,069,226 171,888,945 1,095,851 2019 1,352,621,864 405,952,345 211,550,243 1,182,888 2020 1,341,377,216 418,382,455 230,358,924 1,224,387 Data Source: Office of the Cook County Clerk Note: Property in the Village is reassessed every three years. Property is assessed at 33% of actual value. 232 245 Total Taxable Assessed Value Total Direct Tax Rate Estimated Actual Taxable Value Estimated Actual Taxable Value as a Percentage of Actual Value $ 1,694,952,801 0.936 $ 5,084,858,403 33.333% 1,568,774,082 1.051 4,706,322,246 33.333% 1,357,294,084 1.275 4,071,882,252 33.333% 1,390,377,678 1.276 4,171,133,034 33.333% 1,354,550,848 1.352 4,063,652,544 33.333% 1,619,158,852 1.157 4,857,476,556 33.333% 1,670,725,439 1.143 5,012,176,317 33.333% 1,670,073,671 1.142 5,010,221,013 33.333% 1,971,307,340 0.988 5,913,922,020 33.333% 1,991,342,982 0.978 5,974,028,946 33.333% 233 246 p O x O oc m m O co co m N� O oo mct m O N OA OA O v� 7 p O O V N N Ol Vl V O O M O O O O O O O O O E, co M 0 V 0 V o O m V r� Vt N x 0 0 0 0 0 Cl Cl 0 0 0 0 0 0 0 0 0 0 0 0 Cl 0 o" o 0 0 o p.. O O N m_ O O l� �D N x W 01 Vl O m O\ V1 o\ CO Vi Vl M m co m _ O O co O 7 m Vl ct O_ Vl M O r- Vl C) O r - Vl 7 p O O _U N N 6� V1 V O O M O O O O O O O O O N O O O O O O O O O O O O O O O O O O O O O O O N O O O N O op Cl W O ( c N N N N 34 Ol O O N M M_ O a, O _ � m cY O O M M r M p O O N 1 M ' ,a O O O O O O �D V Vl O l0 N O O O O O O O O O O O O Cl O O O O O O O O O N O O O M Cl a 3 3 3 a a a 15, o U o oo 0.1 C,7 a W W a F" U U w H H H C7 C7 C7 C4 � z U> i O N O O O O O O O O O O O O O O O O O O O O O O N O O O M O �p O O m O O _ O l� N N _ r- V1 CO m O O M � \D O lD � O 7 M_O_ N O V1 N W 01 W CY =1 p O O N M M �D vl O O V O O O O O O O O O Vl V V al vl N O O O O O O O O O O O O O O O O O O O O O O N O O O N O o l— O m U o0 1� N Vl o N Vl 7 m o\ IO Io N co lr— 7 v� l_ --� O_ cc O _ --� Ic, rA p O O N m M M Go V1 O O V O O O O O O O O O Go V �D N \O N �O O oc O O, l� O O Cl O l� o0 V1 oo �D O O v\ IO O m I0 l� 01 Nh V'1 01 N O_ ID Ic x � �t O N CO �o N yJ O O h O �o O_ M_ x It M O N h p l;J O N O O N l� Vl O O V O O O O O O O O O l� V l0 l0 N O O O O O O O O Cl Cl Cl O O O O O Cl O O O O O N Cl Cl O M O VlN_ �_ N M l� h Vl p Vl O O O l0 ut O O M O O O O O O O O O O M M ut l Vl N O O O O O O O O O O O O O O O O O O O O O O N O O O N O N N Vl O �O Vl N_ Q`. M_ M Vl O_ l� N N p V O O C� ul V O O M O O O O O O O O O O O M V V Vl N O O O O O O O O O O O O O O O O O O O O O O Cl N O O O N O ti Iq N It M N V N � O V c3 C > bA �tb �°u 34 1 ' ,a v Ca a Q a0 a� a° o o o o a 3 3 3 a a a 15, o U o oo 0.1 C,7 a W W a F" U U w H H H C7 C7 C7 C4 � z U> i O ti Iq N It M N Co N M N y wl wl In 0 x I N J O M O M V O O O N O M ✓� Hy Q Vl U° O O V O M Vl O O � N O V C+ 7 Q �., Snl O N x CO c0 7 CO a, N N M Ol O O O x O1 N N M O r vi M t I 4 4t 4t Q `� ^O'At56 °Fs O 1� N Vi O O O Cl O Cr of l by c°J N vi r,� V 41 V O M C� N Q\ N N M O V O M V O O O N O M Q, O O N O •f1j O O 0.'' R� Ar J7. O p .� w tOi aJ �y f.. 'o rt O d1 N N N N v O O oc � h a, un un cG cry a V� vA Q a w c". x U v� r F• v Q z p o x x N �t N O a x al N ol x m p N l0 7 l� lr- Vl Go N 01 M V N �/1 N O N M O M 1� V'1 N ON N c N M o, 'c p l� V V1 lD tll� l- vl V1 CO M Q, M V1 N O N S O N N V1 N N N �M N M h Zt M Vt M Vl a1 O .My M p O V l0 m r-: N O M O M V O O O N O M W Zt O M v'1 v'1 a,71, I -D 31 O N N Vl V Vl dl 10 dl O M_ M N N M O M O N V O O O M f� Co N M N y wl wl In x I N J Hy Q Vl U° O 3 � 7 Q �., Snl sp. O .O+ Q O w t I 4 4t 4t Q `� ^O'At56 °Fs O bfi Cr CU O by c°J N W O O N O •f1j O O 0.'' R� Ar J7. O p .� w tOi aJ �y f.. 'o ,.Oa sa .>. � ov � un un cG cry a V� vA Q a w c". x U v� r F• v Q z Co N M N VILLAGE OF MOUNT PROSPECT, ILLINOIS Principal Property Tax Payers - Current Fiscal Year and Nine Fiscal Years Ago December 31, 2021 (Unaudited) Taxpayer Taxable Assessed Value 2021* Rank Percentage of Total Village Taxable Assessed Value Taxable Assessed Value 2012 Rank Percentage of Total Village Taxable Assessed Value United Airlines, Inc. $ 39,059,347 1 1.96 % Home Properties Colony 34,163,702 2 1.72 % $ 12,165,956 5 0.78 % Randhurst Casto Conger 28,060,445 3 1.41 % 28,960,930 1 1.85 % CRP 3 West Central LLC 26,547,896 4 1.33 % 1450 Owner LLC 21,355,448 5 1.07 % Mount Prospect Plaza 17,529,339 6 0.88 % Golf Plaza Il 12,072,706 7 0.61 % LIT Industrial Limited 10,489,002 8 0.53 % 8,418,483 6 0.54% Menards - Properties 9,957,315 9 0.50 % Costco 9,848,970 10 0.49 % CRP Holdings 18,996,312 2 1.21 % Ramco Gershenson Prop 17,492,627 3 1.12% Golf Plaza I & 11 16,227,376 4 1.03 % First Industrial 8,186,150 7 0.52 % KRCV Corp 7,723,968 8 0.49% Cummings Allison Corp 7,643,111 9 0.49% Huntington Square 7,405,643 10 0.47 % Totals 209,084,170 Data Source: Office of the Cook County Clerk 10.50 % 133,220,556 8.50 % Note: Every effort has been made to seek out and report the largest taxpayers. However, many of the taxpayers contain multiple parcels and it is possible that some parcels and their valuations were overlooked. *Collections received in 2021 for 2020 Tax Year. 236 249 VILLAGE OF MOUNT PROSPECT, ILLINOIS Property Tax Levies and Collections - Last Ten Fiscal Years December 31, 2021 (Unaudited) Data Source: Office of the County Note: Property in the Village is reassessed each year. Property is assessed at 33% of actual value Other Information: The Statement requires that the information in this schedule be shown for each period for which levied and should be consistent with the periods shown in the schedule of direct and overlapping revenue rates and schedule of direct and overlapping property tax rates. Therefore, most Illinois governments should disclose this by the tax levy year, not the fiscal year. 237 250 Taxes Collected within the Collections Tax Levied for Fiscal Year of the Levy in Total Collections to Date Fiscal Levy the Fiscal Percentage Subsequent Percentage Year Year Year Amount of Levy Years Amount of Levy 2012 2011 $ 15,852,352 $ 15,614,490 98.50% $ (65,951) $ 15,548,539 98.08% 2013 2012 16,477,871 16,278,228 98.79% (122,631) 16,155,597 98.04% 2014 2013 17,301,436 17,064,355 98.63% (83,365) 16,980,990 98.15% 2015 2014 17,730,922 17,521,845 98.82% (132,041) 17,389,804 98.08% 2016 2015 18,312,756 18,130,372 99.00% (214,643) 17,915,729 97.83% 2017 2016 18,727,305 18,534,114 98.97% (210,455) 18,323,659 97.84% 2018 2017 19,087,264 18,865,586 98.84% (154,326) 18,711,260 98.03% 2019 2018 19,087,266 18,710,515 98.03% (84,508) 18,626,007 97.58% 2020 2019 19,469,004 19,187,932 98.56% 94,481 19,282,413 99.04% 2021 2020 19,469,002 19,207,966 98.66% — 19,207,966 98.66% Data Source: Office of the County Note: Property in the Village is reassessed each year. Property is assessed at 33% of actual value Other Information: The Statement requires that the information in this schedule be shown for each period for which levied and should be consistent with the periods shown in the schedule of direct and overlapping revenue rates and schedule of direct and overlapping property tax rates. Therefore, most Illinois governments should disclose this by the tax levy year, not the fiscal year. 237 250 VILLAGE OF MOUNT PROSPECT, ILLINOIS Sales Taxes by Category - Last Ten Fiscal Years December 31, 2021 (Unaudited) General Merchandise Food Drinking and Eating Places Apparel Furniture and H.H., and Radio Lumber, Building Hardware Automobile and Filling Stations Drugs and Miscellaneous Retail Agriculture and All Others Manufacturers Totals Village Direct Sales Tax Rate Number of Taxpayers Data Source: Illinois Department of Revenue 2012 2013 2014 $ 1,186,217 1,171,771 1,135,237 862,501 876,288 891,855 661,285 764,653 778,314 118,034 149,317 163,857 255,967 240,289 221,977 670,057 750,191 756,113 1,681,146 1,508,700 1,578,004 3,422,046 4,081,740 4,574,353 2,073,141 2,616,771 2,802,361 110,009 182,433 383,370 11,040,403 12,342,153 13,285,441 1.00% 1.00% 1.00% 861 883 899 Data available for calendar year only. The fiscal year of the Village is the same as the calendar year. Excludes Home Rules Tax portion. 238 251 2015 2016 2017 2018 2019 2020 2021 1,112,640 1,114,510 1,082,424 1,086,859 992,680 863,330 955,318 949,277 951,863 877,665 856,379 884,898 985,767 985,071 825,994 884,477 879,654 937,398 997,318 870,374 1,035,832 162,116 163,438 157,352 140,366 172,171 145,070 220,190 220,663 209,712 202,302 210,670 197,569 160,490 193,957 791,285 821,872 846,376 913,446 965,237 1,095,425 1,151,396 1,540,910 1,492,452 1,676,338 1,816,029 1,942,864 1,951,579 2,276,879 5,460,292 6,594,754 8,965,486 13,018,288 13,336,938 14,089,151 18,596,444 3,629,675 3,611,295 3,649,578 3,751,156 3,788,000 1,629,707 3,653,554 433,798 500,200 184,759 95,752 101,939 131,654 200,527 15,126,650 16,344,573 18,521,934 22,826,343 23,379,614 21,922,547 29,269,168 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 997 987 1,102 1,078 1,040 987 3,616 239 252 VILLAGE OF MOUNT PROSPECT, ILLINOIS Business District Sales Taxes by Category - Last Ten Fiscal Years December 31, 2021 (Unaudited) General Merchandise Food Drinking and Eating Places Apparel Furniture, H.H., and Radio Lumber, Building Hardware Automobile and Filling Stations Drugs and Miscellaneous Retail Agriculture and All Others Manufacturers Total Village Direct Sales Tax Rate Data Source: Illinois Department of Revenue 2012 2013 2014 $ 89,393 88,289 85,937 18,898 19,146 20,989 29,413 40,954 48,185 16,341 15,594 19,302 16,287 17,106 16,461 90,668 101,338 104,434 17,747 29,896 32,071 4,959 5,203 4,554 283,706 317,526 331,933 0.25% 0.25% 0.25% Data available for calendar year only. The fiscal year of the Village is the same as the calendar year. Note: Amount reported net of IDOR 2% compliance administration and enforcement charge. 240 253 2015 2016 2017 2018 2019 2020 2021 84,364 82,142 76,426 62,848 28,214 19,626 23,759 20,747 21,846 20,186 20,417 18,526 21,501 25,736 51,419 54,393 51,629 50,063 53,476 36,543 40,161 19,963 21,716 20,126 18,060 22,600 12,802 16,484 16,088 15,551 14,438 12,976 12,336 3,661 2,308 107,339 108,480 109,058 112,957 115,524 126,618 139,161 - 16 37,063 31,889 25,843 31,732 29,430 26,739 38,231 5,057 5,323 5,230 6,372 7,101 2,566 4,941 80 342,040 341,340 322,936 315,425 287,207 250,056 290,877 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 241 254 VILLAGE OF MOUNT PROSPECT, ILLINOIS Home Rule Sales Taxes by Category - Last Ten Fiscal Years December 31, 2021 (Unaudited) Total Number of Taxpayers Village Home Rule Sales Tax Rate Data Source: Illinois Department of Revenue 4,828,807 5,138,635 5,395,213 861 883 889 1.00% 1.00% 1.00% Data available for calendar year only. The fiscal year of the Village is the same as the calendar year. Interest income included in warrants is not reflected in this schedule. *Excluding additional allocations received (excluded from IDOR online report). **Amount reported net of IDOR compliance administration and enforcement charge. 242 255 2012* 2013* 2014* General Merchandise $ 900,240 885,410 864,254 Food 238,050 240,013 234,082 Drinking and Eating Places 656,376 754,898 766,264 Apparel 117,928 148,991 163,487 Furniture and H.H. and Radio 251,253 235,936 218,184 Lumber, Building Hardware 665,891 743,492 752,301 Automobile and Filling Stations 922,948 948,339 956,255 Drugs and Miscellaneous Retail 454,001 509,608 508,772 Agriculture and All Others 514,937 492,238 550,929 Manufacturers 107,183 179,710 380,685 Total Number of Taxpayers Village Home Rule Sales Tax Rate Data Source: Illinois Department of Revenue 4,828,807 5,138,635 5,395,213 861 883 889 1.00% 1.00% 1.00% Data available for calendar year only. The fiscal year of the Village is the same as the calendar year. Interest income included in warrants is not reflected in this schedule. *Excluding additional allocations received (excluded from IDOR online report). **Amount reported net of IDOR compliance administration and enforcement charge. 242 255 2015* 2016* 2017** 2018** 2019** 2020** 2021** 861,799 858,739 822,252 806,891 675,585 577,971 678,058 249,683 246,759 231,474 238,527 249,420 268,755 306,796 808,304 862,052 831,312 852,731 913,754 764,116 932,604 161,630 162,986 154,603 137,624 169,062 142,434 216,205 217,031 206,542 196,588 204,642 192,307 157,506 190,925 787,000 817,396 828,391 891,206 942,053 1,068,094 1,125,051 893,301 831,269 937,688 1,029,522 1,031,563 924,782 1,172,730 488,963 439,702 473,116 517,588 533,057 754,906 1,148,222 548,380 623,624 702,386 667,655 611,860 528,437 722,886 431,129 497,623 179,655 91,683 97,836 126,659 194,381 5,447,220 5,546,692 5,357,465 5,438,069 5,416,497 5,313,660 6,687,858 997 987 1,102 1,078 1,040 987 3,616 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 243 256 VILLAGE OF MOUNT PROSPECT, ILLINOIS Direct and Overlapping Sales Tax Rates - Last Ten Fiscal Years December 31, 2021 (Unaudited) Fiscal Year State Tax County Rate Regional Transportation Authority Village Direct Rate Total 2012 5.00% 1.25% 1.00% 1.00% 9.25% 2013 5.00% 1.00% 1.00% 1.00% 9.00% 2014 5.00% 1.00% 1.00% 1.00% 9.00% 2015 5.00% 1.00% 1.00% 1.00% 9.00% 2016 5.00% 2.00% 1.00% 1.00% 10.00% 2017 5.00% 2.00% 1.00% 1.00% 10.00% 2018 5.00% 2.00% 1.00% 1.00% 10.00% 2019 5.00% 2.00% 1.00% 1.00% 10.00% 2020 5.00% 2.00% 1.00% 1.00% 10.00% 2021 5.00% 2.00% 1.00% 1.00% 10.00% Data Source: State of Tllinois Note: Business district is assessed additional 0.25% sales tax. 244 257 VILLAGE OF MOUNT PROSPECT, ILLINOIS Ratios of Outstanding Debt by Type - Last Ten Fiscal Years December 31, 2021 (Unaudited) Business -Type Governmental Activities Activities Data Source: Audited Financial (1) The Village entered into five installment contracts with the Illinois Environmental Protection Agency to provide funds for the construction of flood control projects. The contracts are for a 20 -year period with equal semiannual installments. Only one of the five original loans remain outstanding. (2) The Village entered into an installment note to provide funding for the construction of certain flood control projects. The loan is payable in annual installments over a seven-year period. (3) See the schedule of Demographic and Economic Information for personal income and population data. Note: Details of the Village's outstanding debt can be found in the notes to financial statements. 245 258 Business Percentage Fiscal General IEPA District General Total of Year Obligation Loan Installment Limited Tax Obligation Primary Personal Per Ended Bonds Payable (1) Note (2) Note Payable Bonds Government Income (3) Capita (3) 2012 $ 22,790,000 $ 1,706,824 $ 2,500,000 $ — $ —S 26,996,824 1.50%S 498 2013 31,645,000 1,139,512 2,475,000 30,451,305 — 65,710,817 3.65% 1,213 2014 48,433,628 721,927 2,340,000 31,514,427 — 83,009,982 4.61% 1,532 2015 45,927,931 543,015 1,940,000 31,790,140 — 80,201,086 4.46% 1,481 2016 43,905,073 359,175 1,525,000 31,767,253 — 77,556,501 4.31% 1,432 2017 45,784,843 170,271 1,105,000 32,525,273 5,063,964 84,649,351 4.71% 1,563 2018 85,737,998 57,500 590,000 33,192,363 9,827,936 129,405,797 7.19% 2,389 2019 90,476,575 35,329,187 19,567,083 145,372,845 8.08% 2,684 2020 86,146,970 35,905,176 19,206,498 141,258,644 6.50% 2,587 2021 81,283,168 36,730,522 18,644,921 136,658,611 5.94% 2,404 Data Source: Audited Financial (1) The Village entered into five installment contracts with the Illinois Environmental Protection Agency to provide funds for the construction of flood control projects. The contracts are for a 20 -year period with equal semiannual installments. Only one of the five original loans remain outstanding. (2) The Village entered into an installment note to provide funding for the construction of certain flood control projects. The loan is payable in annual installments over a seven-year period. (3) See the schedule of Demographic and Economic Information for personal income and population data. Note: Details of the Village's outstanding debt can be found in the notes to financial statements. 245 258 VILLAGE OF MOUNT PROSPECT, ILLINOIS Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years December 31, 2021 (Unaudited) Fiscal Year General Obligation Bonds Less Amounts Available in Debt Service Fund Total Percentage of Total Taxable Assessed Value of Property (1) Per Capita (2) 2012 $ 22,790,000 $ 135,817 $ 22,654,183 0.45% $ 418 2013 31,645,000 121,491 31,523,509 0.67% 582 2014 48,433,628 131,635 48,301,993 1.19% 892 2015 45,927,931 154,206 45,773,725 1.10% 845 2016 43,905,073 168,152 43,736,921 1.08% 807 2017 50,848,807 184,195 50,664,612 1.04% 935 2018 95,565,934 2,546,115 93,019,819 1.86% 1,717 2019 110,043,658 1,850,968 108,192,690 2.16% 1,997 2020 105,353,468 1,261,124 104,092,344 1.76% 1,906 2021 99,928,089 1,533,779 98,394,310 1.65% 1,731 Data Sources: Audited financial statements and Office of the County Cleric (1) See the schedule of Assessed Value and Actual Value of Taxable Property for property value data. (2) See the schedule of Demographic and Economic Information for personal income and population data. Note: Details regarding the Village's outstanding debt can be found in the notes to the financial statements. 246 259 VILLAGE OF MOUNT PROSPECT, ILLINOIS Schedule of Direct and Overlapping Governmental Activities Debt December 31, 2021 (Unaudited) Governmental Unit (1) Gross Debt (2) Percentage Debt Applicable to the Village of Mount Prospect (3) Village Share of Debt Village of Mount Prospect $ 118,013,690 100.00% $ 118,013,690 County of Cook 2,596,351,750 1.15% 29,728,228 Forest Preserve District of Cook County 78,085,000 1.15% 894,073 Metropolitan Water Reclamation District 2,599,744,000 1.17% 30,287,018 Community College District #535 47,200,000 0.02% 8,024 Community College District 9512 244,065,000 9.15% 22,319,744 School District #214 25,000,000 19.46% 4,865,000 School District #207 111,200,000 0.08% 92,296 School District#57 5,470,000 94.13% 5,148,692 School District #26 12,615,000 78.65% 9,921,445 School District #25 40,250,000 2.60% 1,047,305 School District #23 10,500,000 8.58% 900,375 School District #21 84,350,000 2.85% 2,404,819 School District #59 32,355,000 18.21% 5,891,846 Arlington Heights Park District 11,427,000 1.92% 219,284 Des Plaines Park District 6,069,000 1.67% 101,534 Mount Prospect Park District 2,870,415 75.65% 2,171,325 Total Overlapping Debt 5,907,552,165 116,001,008 Total Direct and Overlapping Debt 6,025,565,855 234,014,698 Data Source: Governmental units and the percentage of overlapping debt from the County Clerk's office. Gross debt of the overlapping governmental units obtained from ACFR's on file with the Cook County Treasurer's Office. (1) Gross bonded debt excluding outstanding general obligation (alternate revenue bonds) which are expected to be paid from sources other then general taxation. (2) Determined by ratio of 2019 assessed value of property subject to taxation in overlapping unit to value of property subject to taxation in the Village. (3) Amount in column (2) multiplied by amount in column (1). 247 260 VILLAGE OF MOUNT PROSPECT, ILLINOIS Schedule of Legal Debt Margin December 31, 2021 (Unaudited) The Village is a home rule municipality. Article VII, Section 6(k) of the 1970 Illinois constitution governs computation of legal debt margin. The General Assembly may limit by law the amount and require referendum approval of debt to be incurred by some home rule municipalities, payable from ad valorem property tax receipts, only in excess of the following percentages of the assessed value of its taxable property ... (2) if its population is more than 25,000 and less than 500,000 an aggregate of one percent: indebtedness which is outstanding on the effective date (July 1, 1971) of this constitution or which is thereafter approved by referendum... shall not be included in the foregoing percentage amounts. To date the General Assembly has set no limits for home rule municipalities. The government is a home rule municipality. 248 261 VILLAGE OF MOUNT PROSPECT, ILLINOIS Demographic and Economic Statistics - Last Ten Fiscal Years December 31, 2021 (Unaudited) Fiscal Year (1) Population (2) Equalized Assessed Value Personal Income (1) Per Capita Personal Income (3) Unemployment Rate 2012 54,167 $ 1,568,774,082 $ 1,798,831,903 $ 33,209 6.60% 2013 54,167 1,357,294,084 1,798,831,903 33,209 6.70% 2014 54,167 1,390,377,678 1,798,831,903 33,209 5.50% 2015 54,167 1,354,550,848 1,798,831,903 33,209 4.30% 2016 54,167 1,304,972,506 1,798,831,903 33,209 4.60% 2017 54,167 1,670,725,439 1,798,831,903 33,209 3.70% 2018 54,167 1,670,073,671 1,798,831,903 33,209 2.90% 2019 54,167 1,971,307,340 1,798,831,903 33,209 2.70% 2020 54,604 1,991,342,982 2,174,658,904 39,826 6.60% 2021 56,852 N/A 2,299,777,104 40,452 5.00% Data source: (1) U.S. Department of Commerce, Bureau of the Census (2) Office of the Cook County Cleric (3) IDES Local Area Unemployment Statistics N/A - Not Available 249 262 VILLAGE OF MOUNT PROSPECT, ILLINOIS Principal Employers - Current Fiscal Year and Nine Fiscal Years Ago December 31, 2021 (Unaudited) Employer 2021 2012 Percentage Percentage of Total of Total Village Village Employees Rank Employment Employees Rank Employment CVS Caremark 1,400 1 2.46% 809 1 1.49% Robert Bosch Tool Corporation 650 2 1.14% 650 2 1.20% Cummins -Allison 391 3 0.69% 450 3 0.83% Mount Prospect School District 57 323 4 0.57% 271 8 0.50% Village of Mount Prospect 318 5 0.56% 305 4 0.56% Township High School District 214 300 6 0.53% 225 10 0.42% Rauland Borg 300 7 0.53% 300 6 0.55% Home Depot #1913 287 8 0.50% Wal-Mart Supercenter #1681 269 9 0.47% 300 5 0.55% Jewel Food Store #3476 240 10 0.42% 288 7 0.53% Carson Pirie Scott 250 9 0.46% 4,478 7.87% 3,848 7.09% Data Sources: Village Records 250 263 VILLAGE OF MOUNT PROSPECT, ILLINOIS Full -Time and Part -Time Employees by Function/Program - Last Ten Fiscal Years December 31, 2021 (Unaudited) See Following Page 251 264 VILLAGE OF MOUNT PROSPECT, ILLINOIS Full -Time Equivalent Employees by Function/Program - Last Ten Fiscal Years December 31, 2021 (Unaudited) Function/Program 2012 2013 2014 Public Representation/Community and Civic Services 2.10 2.10 2.05 General Government Village Administration Administration 15.45 15.45 15.45 Finance 13.00 13.00 13.00 Total 28.45 28.45 28.45 Community Development Community Development 17.75 18.50 18.50 Community Development/CDBG 1.25 1.00 1.00 Total 19.00 19.50 19.50 Human Services Department 9.50 9.50 9.50 Public Safety and Protection Police Department 99.50 100.50 100.50 Fire Department 74.50 74.50 74.50 Total 174.00 175.00 175.00 Public Works Department Administration 2.85 2.85 2.85 Streets/Buildings/Parking 11.85 12.45 12.40 Forestry 9.75 9.25 9.35 Engineering 8.00 8.00 8.00 Water/Sewer 25.00 24.75 24.75 Refuse Disposal 2.90 2.90 2.90 Parking 0.90 0.90 0.90 Vehicle Maintenance 10.90 10.75 10.75 Total 72.15 71.85 71.90 Village Total 305.20 306.40 306.40 Data Source: Village Budget 252 265 16.85 13.00 16.75 13.00 17.35 13.00 15.85 13.50 15.50 13.50 16.00 14.00 16.00 13.00 2015 2016 2017 2018 2019 2020 2021 18.50 1.00 18.75 0.75 18.75 0.75 21.00 21.25 21.25 20.75 2.15 2.20 2.10 2.05 0.80 0.80 0.70 16.85 13.00 16.75 13.00 17.35 13.00 15.85 13.50 15.50 13.50 16.00 14.00 16.00 13.00 29.85 29.75 30.35 29.35 29.00 30.00 29.00 18.50 1.00 18.75 0.75 18.75 0.75 21.00 21.25 21.25 20.75 19.50 19.50 19.50 21.00 21.25 21.25 20.75 9.50 9.50 9.55 10.55 9.55 9.55 9.55 99.50 75.00 101.50 81.00 102.50 81.00 103.00 81.00 104.00 80.75 105.50 80.75 105.50 80.75 174.50 182.50 183.50 184.00 184.75 186.25 186.25 2.85 3.85 3.35 4.75 5.10 5.10 5.10 12.40 12.35 12.35 14.20 16.05 16.30 16.00 9.25 8.35 8.35 8.35 9.55 9.55 9.55 8.00 8.00 8.00 7.90 8.40 8.40 8.40 24.75 2.90 25.25 25.75 23.30 23.30 23.30 2.90 24.75 2.90 0.90 0.90 0.90 10.75 10.75 10.75 10.75 9.60 10.10 9.65 71.80 71.85 71.85 71.70 72.00 72.75 72.00 307.30 315.30 316.85 318.65 317.35 320.60 318.25 253 266 VILLAGE OF MOUNT PROSPECT, ILLINOIS Operating Indicators by Function/Program - Last Ten Fiscal Years December 31, 2021 (Unaudited) Function/Program 2012 2013 2014 Finance Department Vehicle Stickers Issued 43,092 43,490 42,789 Utility Bills 90,147 152,312 152,649 Real Estate Transfer Tax Stamps Sold 1,282 1,451 1,426 Community Development Building Division Permits Issued 2,244 2,383 2,653 Plan Reviews 595 524 471 Building Code Inspections 8,939 7,824 10,952 Environmental Health Division Inspections Food Service 405 393 434 Multi -family Buildings 565 568 1,068 Public Safety Police Number of Crimes 3,178 2,809 2,480 Number of Service Calls 19,184 19,206 18,594 Number of Arrests 1,602 1,509 1,307 Moving Violations 5,979 6,152 4,928 Parking Citations 7,640 7,314 7,671 Fire Fire Calls 1,892 1,967 1,926 EMS Calls 3,885 3,912 3,985 Fire Prevention Inspections 3,308 3,144 3,047 Training Hours 21,340 21,149 24,033 Public Works Streets Street Resurfacing (Miles) 5.20 7.50 18.80 Crack Filling (Lbs) 51,885 49,153 59,568 Leaves Removed (Tons) 1,785 2,070 2,081 Water Water Mains Installed (Lineal Feet) Water Billed (1,000 Gallons) 1,341,268 1,284,779 1,301,528 Sanitary Sewers Cleaned (Ft) 58,922 65,000 90,000 Refuse (Single/Multi-Family) Solid Waste Collected (Tons) 31,385 29,494 30,320 Recycling (Tons) 6,028 5,692 5,498 Data Source: Various Village Departments * Numbers affected by COVID-19. 254 267 2015 2016 2017 2018 2019 2020 2021 41,964 41,323 40,638 39,214 37,945 35,337 35,687 152,703 152,872 152,689 152,689 149,186 149,305 152,408 1,433 1,541 1,472 1,473 1,455 1,485 1,596 2,490 2,500 2,375 2,562 2,502 2,500 2,935 536 513 425 465 575 600 636 10,590 9,535 9,640 9,320 9,100 9,000 10,480 409 405 400 359 406 432 1,216 1,043 1,000 1,000 1,025 1,015 1,000 902 2,399 2,235 2,387 2,335 2,392 2,102 2,350 18,906 18,232 18,393 18,339 18,483 15,650 18,400 1,178 1,083 1,102 1,019 1,113 919 338 4,839 4,137 3,842 3,440 3,404 2,501 2,300 7,166 5,637 8,179 5,564 4,366 3,692 6,000 1,883 1,889 1,816 1,884 1,855 1,793 1,767 4,061 4,032 4,105 4,195 4,598 4,069 4,734 2,700 3,800 2,075 2,600 3,000 1,500 * 1,956 25,990 29,024 31,626 31,651 31,258 24,221 * 29,587 9.80 6.30 7.00 7.00 6.80 7.10 7.73 51,412 53,623 51,412 54,000 54,000 54,000 55,371 1,988 1,676 1,848 1,856 1,853 1,889 1,100 1,990 600 1,990 3,900 4,510 5,326 6,513 1,204,478 1,224,661 1,208,079 1,179,096 1,183,694 1,219,545 1,259,250 120,000 75,000 100,000 75,000 60,000 60,000 52,000 30,605 26,574 29,613 28,235 28,854 28,776 28,704 5,369 5,355 5,492 5,086 4,672 4,859 4,486 255 268 VILLAGE OF MOUNT PROSPECT, ILLINOIS Capital Asset Statistics by Function/Program - Last Ten Fiscal Years December 31, 2021 (Unaudited) Function/Program 2012 2013 2014 Public Safety Police Stations Patrol Units Fire Fire Stations Fire Engines/Vehicles Public Works Residential Streets (Miles) Water Water Mains (Miles) Fire Hydrants Storage Capacity (Gallons) Wastewater Sanitary Sewer (Miles) Storm Sewers (Miles) Combined Sewers (Miles) Data Source: Various Village departments 1 1 1 33 33 32 3 3 3 20 23 23 134 135 134 162 161 160 2,295 2,274 2,242 8.8M 8.8M 8.8M 71 71 71 128 135 135 54 54 54 256 269 2015 2016 2017 2018 2019 2020 2021 1 1 1 1 1 1 1 32 30 31 31 30 30 30 3 3 3 3 3 3 3 22 21 21 21 22 22 22 134 135 135 135 135 135 136 160 160 160 160 160 160 160 2,240 2,243 2,246 2,246 2,246 2,246 2,246 8.8M 8.8M 8.8M 8.8M 8.8M 8.8M 8.8M 71 72 72 72 72 72 72 108 108 110 110 110 110 110 54 55 55 55 55 55 55 257 270 ADDITIONAL DISCLOSURES REQUIRED BY SEC RULE 15C2-12 258 271 VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS FINANCIAL INFORMATION STATEMENT OF INDEBTEDNESS Assessed Valuation of Taxable Real Property, 2020 Estimated True Value of Taxable Real Property, 2020 Direct Bonded Debt payable from Property Taxes (1) Payable From Property taxes Self -Supporting Debt Total Direct Bonded Debt Overlapping Bonded Debt Payable from Property Taxes (2) Schools Other Than Schools Total Overlapping Bonded Debt Total Direct and Overlapping Bonded Debt Total Direct and Overlapping Bonded Debt Excl. Self -Supporting Amount As Percent of Per Capita Applicable as of Assessed Estimated 2010 Census December 31, 2021 Value True Value 56,852 $1,991,342,982 100.00% 33.33% $ 35,026.79 5,974,028,946 300.00% 100.00% 105,080.37 $50,910,000 2.56% 0.85% $ 895.48 85,778,611 4.31% 1.44% 1,508.81 $136,688,611 6.87% 2.29% $ 2,404.29 $52,599,546 2.64% 0.89% $ 925.20 63,401,462 3.18% 1.67% 1,115.20 $116,001,008 5.82% 2.56% $ 2,040.40 $252,689,619 12.69% 4.85% $ 4,444.69 $166,911,008 8.380/4, 2.790/t, $ 2,935.89 Notes: 1. The Village is a home -rule unit under the Illinois constitution and, therefore, has no debt limit nor is it required to seek referendum approval for the issuance of general obligation debt. 2. See "Detailed Overlapping Bonded Indebtedness Payable From Property Taxes at December 31, 2021". RETIREMENT SCHEDULE OF OUTSTANDING VILLAGE GENERAL OBLIGATION BONDED DEBT (Note 1) (As of December, 31, 2021) Principal Maturities Due Source of Payments Total Maturities Debt Service Tax Levies Calendar Property Annual Cumulative Levy Property Date Taxes Amount Percent Year Taxes 2022 5,080,000 5,080,000 10.0% 2021 5,524,686 2023 3,615,000 3,615,000 13.5% 2022 3,652,500 2024 3,805,000 3,805,000 17.3% 2023 3,649,100 2025 4,025,000 4,025,000 21.2% 2024 3,643,800 2026 4,255,000 4,255,000 25.4% 2025 3,643,850 2027 4,465,000 4,465,000 29.8% 2026 3,637,000 2028 4,705,000 4,705,000 34.4% 2027 3,643,400 2029 4,435,000 4,435,000 38.7% 2028 3,142,500 2030 4,795,000 4,795,000 43.4% 2029 3,235,250 2031 5,065,000 5,065,000 48.4% 2030 3,234,250 2032 5,340,000 5,340,000 53.6% 2031 3,233,750 2033 5,645,000 5,645,000 59.2% 2030 3,233,500 2034 5,030,000 5,030,000 64.1% 2031 3,233,250 2035 5,290,000 5,290,000 69.3% 2034 3,238,138 2036 5,550,000 5,550,000 74.7% 2035 3,237,075 2037 5,825,000 5,825,000 80.4% 2036 3,237,825 2038 4,020,000 4,020,000 84.4% 2037 3,235,200 2039 4,200,000 4,200,000 88.5% 2038 3,236,000 2040 2,765,000 2,765,000 91.2% 2039 3,234,600 2041 2,875,000 2,875,000 94.0% 2040 3,234,000 2042 2,990,000 2,990,000 97.0% 2041 3,234,000 2043 3,110,000 3,110,000 100.0% 2042 3,234,400 $96,885,000 $96,885,000 259 272 Notes: 1. The Village is a home rule unit under the 1970 Illinois Constitution and as such has no debt limit, nor is it required to seek referendum approval for the issuance of general obligation debt. The Village has used alternative revenue sources including Home -rule sales tax, water/sewer charges etc. to perform the debt service for certain bonds. The Village abates the property taxes for the bonds paid with the alternative revenue sources. DEBT RATIOS AND PER CAPITAL DEBT -GENERAL OBLIGATION BOND SALES 2003-2021 (Note 1) Notes: 1. Information in table pulled from applicable Official Statements. 2. Excludes the Village's general obligation bonds which are payable from non -property taxes. 3. Village population estimates used in these calculations were 56,265 in 2001-2009, and 54,167 in 2010-2019 and 56,852 beginning in 2020. EQUALIZED ASSESSED VALUATION FOR TAXING PURPOSES (Note 1) Real Property Tax Net For Plus Total For All Increase Levy General Taxing Incremental Taxing Over Year (2) Purposes (3) Valuation Purposes (4) Prior Year 2011 1,694,952,801 Ratio to Equalized Assessed Value Per Capita (3) (7.7%) 2012 Direct Debt Direct & Overlapping 1,607,021,964 Direct & Overlapping 2013 1,357,294,084 Including Excluding Including Excluding Including Excluding Village Issue 2.4% Self- Self- Self- Self- Self- Self - Sale Date Amount Supporting Supporting Supporting Supporting Supporting Supporting January 21, 2003 12,235,000 1.39% 1.05% 3.77% 3.43% 2,544.05 2,316.16 December 15, 2006 10,000,000 0.78% 0.69% 2.72% 2.63% 2,362.39 2,287.21 February 17, 2009 10,000,000 0.72% 0.72% 2.45% 2.45% 2,445.85 2,445.85 December 1, 2009 3,430,000 0.70% 0.70% 2.47% 2.47% 2,749.42 2,749.42 December 1, 2009 2,650,000 0.70% 0.70% 2.47% 2.47% 2,749.42 2,749.42 July 29, 2011 4,100,000 0.60% 0.60% 2.80% 2.80% 2,921.82 2,921.82 July 29, 2011 5,160,000 0.60% 0.60% 2.80% 2.80% 2,921.82 2,921.82 January 3, 2012 2,975,000 0.60% 0.60% 2.80% 2.80% 2,921.82 2,921.82 September 10, 2013 9,800,000 0.92% 0.92% 3.42% 3.42% 3,042.80 3,043.80 February 4, 2014 6,279,000 1.13% 1.09% 3.74% 3.71% 3,253.40 3,223.59 September 8, 2016 8,735,000 2.00% 1.16% 5.29% 4.45% 3,356.50 3,309.47 December 1, 2016 9,100,000 1.90% 1.09% 5.25% 4.43% 3,356.50 3,296.96 December 20, 2017 9,740,000 1.64% 1.04% 3.78% 3.19% 3,385.89 2,829.19 May 1, 2018 7,060,000 1.62% 0.62% 3.79% 2.75% 4,214.20 2,450.93 October 16, 2018 38,440,000 2.39% 1.28% 4.55% 3.41% 4,214.20 3,135.48 June 3, 2019 9,600,000 3.66% 2.20% 9.75% 5.85% 2,990.13 1,533.88 November 25, 2019 7,725,000 3.67% 2.20% 9.76% 5.86% 2,990.13 1,533.88 Notes: 1. Information in table pulled from applicable Official Statements. 2. Excludes the Village's general obligation bonds which are payable from non -property taxes. 3. Village population estimates used in these calculations were 56,265 in 2001-2009, and 54,167 in 2010-2019 and 56,852 beginning in 2020. EQUALIZED ASSESSED VALUATION FOR TAXING PURPOSES (Note 1) Real Property Tax Net For Plus Total For All Increase Levy General Taxing Incremental Taxing Over Year (2) Purposes (3) Valuation Purposes (4) Prior Year 2011 1,694,952,801 42,659,295 1,737,612,096 (7.7%) 2012 1,568,774,082 38,247,882 1,607,021,964 (7.5%) 2013 1,357,294,084 32,976,484 1,390,270,568 (13.5%) 2014 1,390,377,678 33,230,688 1,423,608,366 2.4% 2015 1,354,550,848 32,251,850 1,386,802,698 (2.6%) 2016 1,619,158,852 47,669,419 1,666,828,271 20.2% 2017 1,670,725,439 - 1,670,725,439 0.2% 2018 1,670,073,671 2279575 1,702,916,654 0.1% 2019 1,962,779,503 8,527,837 1,971,307,340 17.9% 2020 1,957,111,396 14,195,944 1,991,342,982 1.0% 260 273 Notes: 1. Property in Cook County is separated into two primary classifications for assessment purposes (10% for residential and 25% for commercial property). After the assessor establishes the fair market value of a parcel of land, the value is multiplied by one of the classification percentages to arrive at the assessed valuation for that parcel. The Illinois Department of Revenue furnishes each county with an adjustment factor (the equalization factor) to equalize the level of assessment between counties. After the equalization factor is applied, the valuation of the property for taxing purposes has been established -tax rates are applied to the equalized valuation. 2. Under the current triennial reassessment system in Cook County, the Village was most recently reassessed in 2019 and the Village equalized assessed value increased by 17.9% compared to the prior year. 3. Excludes four categories of exemptions: the Senior Citizens' Homestead Exemption; the General Homestead Exemption; the Senior Citizens' Tax Freeze Homestead Exemption and the Long -Term Homeowner Exemption. 4. The Village's tax rate is calculated based on the village's Net Equalized Assessed Valuation (shown in this table as "Net for General Taxing Purposes") and is extended against its entire Equalized Assessed Valuation (shown in this table as "Total for all Taxing Purposes") excluding only the statuary exemptions. Of the taxes collected, that portion applicable to incremental valuation (valuation of tax increment districts) is remitted to the Village by the County Collector for deposit in the applicable tax allocation fund. The Equalized Assessed Valuation for which the Village receives its portion of the total tax rate for all non -TIF purposes is shown in this table as "Net for General Taxing Purposes". DETAILED OVERLAPPING BONDED INDEBTEDNESS PAYABLE FROM PROPERTY TAXES AT DECEMBER 31, 2021 SCHOOL DISTRICTS: Elementary Districts: Mount Prospect No. 57 Community Consolidated No. 59 River Trails No. 26 Wheeling Community Consolidated No. 21 Arlington Heights No. 25 Prospect Heights No. 23 High School Districts: Wheeling/Elk Grove No. 214 Maine Township No. 207 Community Colleges: Oakton No. 535 Harper No. 512 Total Schools OTHER THAN SCHOOL DISTRICTS: Cook County, Including Forest Preserve District Metropolitan Water Reclamation District Park Districts: Mount Prospect Arlington Heights Des Plaines Percent of Village's Applicable Share Village's 2020 of Gross Debt to be Real Property Gross Paid From Property Taxes (1) in Taxing Body Bonded Debt Percent Amount 37.7% 5,470,000 94.126% 5,148,692 26.7% 32,355,000 18.210% 5,891,846 26.4% 12,615,000 78.648% 9,921,445 3.4% 84,350,000 2.851% 2,404,819 3.2% 40,250,000 2.602% 1,047,305 2.5% 10,500,000 8.575% 900,375 99.8% 25,000,000 19.460% 4,865,000 0.2% 111,200,000 0.083% 92,296 0.2% 47,200,000 0.017% 8,024 99.8% 244,065,000 9.145% 22,319,744 52,599,546 100.0% 2,674,436,750 1.145% 30,622,301 100.0% 2,599,744,000 1.165% 30,287,018 66.8% 2,870,415 75.645% 2,171,325 2.8% 11,427,000 1.919% 219,284 1.8% 6,069,000 1.673% 101,534 Total Other Than Schools 63,401,462 261 274 Notes: 1. Village's share based upon 2019 Real Property valuations. TAX RATES PER $100 EQUALIZED ASSESSED VALUATION (Note 1) Village of Mount Prospect: Bonds and Interest Pensions (Police, Fire) Police Protection Fire Protection Corporate Total Village Cook County, Including Forest Preserve Metropolitan Water Reclamation District Mount Prospect Park District Mount Prospect Public Library Special Service Area No. 5 Community Consolidated School District Township High School District No. 214 Harper College No. 512 All Other Total (2) Village as a Percent of Total Levv Years 2016 2017 2018 2019 2020 $0.143 $0.146 $0.148 $0.132 $0.138 0.381 0.384 0.401 0.370 0.366 0.311 0.301 0.292 0.261 0.223 0.322 0.312 0.302 0.225 0.251 $ 1.157 $ 1.143 $ 1.143 $ 0.988 $ 0.978 0.596 0.558 0.549 0.543 0.511 0.406 0.402 0.396 0.389 0.378 0.594 0.609 0.633 0.547 0.554 0.687 0.681 0.696 0.599 0.593 0.119 0.118 - - - 2.998 3.031 3.173 2.751 2.735 2.527 2.563 2.669 2.356 2.382 0.416 0.425 0.443 0.403 0.409 0.105 0.135 0.106 0.090 0.087 $ 9.605 $ 9.665 $ 9.808 $ 8.666 $ 8.627 12.0% 11.8% 11.7% 11.4% 11.3% Notes 1. As a home rule unit under the 1970 Illinois Constitution, the Village has no statutory tax rate or levy limitations. 2. Tax rate applicable to the largest tax code in the Village and most recent available from Cook County. TAX EXTENSIONS AND COLLECTIONS (Village Purposes Only) Total Taxes Collected as Levy Collection Total Taxes of December 31, 2020 (Note 1) Year Year Extended Amount Percent (2) 2012 2013 16,477,871 16,278,228 98.79% 2013 2014 17,301,436 17,064,355 98.63% 2014 2015 17,730,922 17,521,845 98.82% 2015 2016 18,312,756 18,130,372 99.00% 2016 2017 18,727,305 18,534,114 98.97% 2017 2018 19,087,264 18,865,586 98.84% 2018 2019 19,087,266 18,710,515 98.03% 2019 2020 19,469,004 19,187,932 98.56% 2020 2021 19,469,002 19,207,967 98.66% Notes: 1. Source: Cook County Treasurer's Office. Tax payments, including late payments and proceeds from tax sales, are shown as collections in the year when due. The "Amount Collected" is not the same as distributions to the Village because tax refunds (pursuant to court orders, first time homestead exemptions other exemptions, etc.) are deducted from "Amount Collected" and interest earnings are added to "Amount Collected" in calculating the distributions. 262 275 2. Cook County property taxes are payable in two installments: the first on March 1, and the second on the latter of August 1 or 30 days after the mailing of the tax bills. The first installment is an estimated bill and is 55% of the prior year's bill. The second installment is based on the current levy, assessment and equalization and reflects any changes from the prior year in those factors. TEN LARGEST TAXPAYERS Equalized Assessed Percent of Rank Taxpayer Business/Properties Valuation (1) Village (2) 1 United Airlines Inc. 2 Home Properties Colony 3 Randhurst Costco Conger 4 CRP 3 West Center LLC 5 1450 Owner LLC 6 Mount Prospect Plaza 7 Golf Plaza II 8 LIT Industrial Limited 9 Menards - Properties 10 Costco Operations Center Apartments Membership Warehouse Club Industrial Industrial Real Estate Shopping Center Shopping Center Industrial Hardware and Home Building Store Membership Warehouse Club Notes: 1. Valuations as of January 1, 2020 for 2021 tax purposes. 2. Total 2020 Village valuation is $ 1,991,342,982 39,059,347 1.96% 34,163,702 1.72% 28,060,445 1.41% 26,547,896 1.33% 21,355,448 1.07% 17,529,339 0.88% 12,072,706 0.61% 10,489,002 0.53% 9,957,315 0.50% 9,848,970 0.49% $ 209,084,170 10.50% 2013 AND 2020 TAX BASE DISTRIBUTION BY PROPERTY CLASSIFICATION* Village of Mount Prospect Taxable Valuation Percent of Total Classification 2013 2020 % 2013 2020 Residential 948,371,026 1,341,377,21 41.44% 69.87% 67.36% Commercial 272,696,503 418,382,455 53.42% 20.09% 21.01% Industrial 135,438,749 230,358,924 70.08% 9.98% 11.57% Railroad 787,806 1,224,387 55.42% 0.06% 0.06% Total 1,357,294,084 1,991,342,98 46.71% 100.00% 100.00% * A breakdown by property classification of the Village's levy year 2021 valuation is not available as of the date of this report. 263 276 GENERAL FUND (Note 1) Summary Statement of Revenues, Expenditures and Changes in Fund Balance (Fiscal Years Ending December 31) Revenues: Property Taxes Sales Taxes State Income Taxes Licenses, Permits & Fees Utility Taxes Charges for Service Fines & Forfeits Investment Income Food & Beverage Tax Real Estate Transfer Tax All Other Revenues Total Revenues Expenditures: General Government Public Representation Division Village Manager's Office Finance Department Community Development -Administration Benefit Payments Total General Government Public Safety: Code Enforcement Police Department Fire & Emergency Protection Department Total Public Safety Highways & Streets Health Welfare Culture & Recreation Net Transfers (In)/Out Total Expenditures Revenues Over (Under) Expenditures Ending Fund Balance Actual 2021 2017 2018 2019 2020 Budget Actual $ 16,112,039 16,112,039 16,081,608 16,367,630 16,397,087 16,226,617 19,458,742 23,658,634 24,249,211 22,693,522 29,325,000 30,100,672 4,975,194 5,187,361 5,765,484 5,886,270 7,154,200 7,175,489 2,334,232 2,484,451 2,733,317 2,402,150 2,377,500 3,462,218 3,491,473 3,476,969 3,292,347 3,025,210 3,351,500 3,053,871 1,527,168 1,475,149 1,875,941 2,320,837 1,892,600 3,153,582 415,189 403,842 286,328 242,004 292,000 445,604 132,925 318,490 430,397 99,325 181,600 (3,025) 839,472 884,637 884,637 818,911 820,000 1,080,890 1,190,331 1,426,037 1,434,580 962,687 1,125,000 1,471,917 3,325,198 3,539,116 3,144,713 3,870,492 8,162,225 2,895,216 $ 53,801,963 58,966,725 60,178,563 58,689,038 71,078,712 69,063,051 134,039 159,710 113,322 120,925 166,251 166,216 4,730,808 3,733,109 3,662,546 3,498,838 4,314,563 3,689,825 2,466,917 2,735,100 2,781,155 1,548,016 1,634,351 1,515,447 933,069 1,109,904 1,129,783 1,723,458 1,176,970 1,063,237 46,780 5,819 5,993 6,173 6,478 6,358 8,311,613 7,743,642 7,692,799 6,897,410 7,298,613 6,441,083 820,925 854,780 962,937 1,062,597 1,137,920 1,094,230 17,823,169 18,564,213 18,975,187 19,085,680 20,327,573 20,023,450 15,522,366 15,586,449 16,188,816 17,096,913 17,792,742 17,616,782 34,166,460 35,005,442 36,126,940 37,245,190 39,258,235 38,734,462 7,613,341 7,915,559 8,674,121 8,705,967 10,585,305 9,370,338 261,533 306,314 195,532 132,833 158,345 166,502 1,548,489 1,410,612 1,372,853 1,446,675 1,536,180 1,422,835 585,907 572,169 388,375 166,740 424,366 306,890 600,000 2,354,391 2,107,362 4,598,000 4,000,000 4,000,000 53,087,343 55,308,129 56,557,982 59,192,815 63,261,044 60,442,110 714,620 3,658,596 3,620,581 (503,777) 7,817,668 8,620,941 $ 19,398,971 23,057,567 26,678,148 26.174,371 33,992,039 34,795,312 264 277 Assets: Cash & Investments Receivables Property Taxes Other Taxes All Other Due From Other Funds Due From Other All Other Assets Total Assets Liabilities & Fund Balance Accounts Payable Deferred Revenues Property Taxes All Other Liabilities Fund Balance: Nonspendable Restricted Committed Assigned Unassigned Total Fund Balance Total Liabilities & Fund Balance Sheet - December 31 2017 2018 2019 2020 2021 $ 14,814,727 $ 16,672,691 $ 20,838,531 $ 20,649,384 $ 29,375,181 16,333,702 16,290,898 16,545,722 16,397,406 16,259,186 6,220,011 7,994,192 8,518,372 7,968,423 9,859,038 417,856 371,481 359,574 305,811 312,830 92,845 22,254 - - - 186,629 49,471 48,570 48,244 92,748 261,219 220,065 370,162 906,902 2,143,866 $ 38,326,989 $ 41,621,052 $ 46,680,931 $ 46,276,170 $ 58,042,849 $ 1,463,624 $ 957,709 $ 517,940 $ 606,869 $ 773,678 16,333,702 16,290, 898 16,539,009 16,354,772 16,156,364 1,130,692 1,314,878 2,945,834 3,140,158 6,317,495 261,219 220,065 370,162 381,902 342,372 - - 3,393,000 2,300,000 - - - - - 3,700,000 19,137,752 22,837,502 22,914,986 23,492,469 30,752,940 $ 19,398,971 $ 23,057,567 $ 26,678,148 $ 26,174,371 $ 34,795,312 $ 38,326,989 $ 41,621,052 $ 46,680,931 $ 46,276,170 $ 58,042,849 Notes: 1. This condensed financial information for the years ending December 31, 2017-2021 has been excerpted from the full Annual Comprehensive Financial Reports of the Village. The accounting policies of the Village conform to GAAP and are disclosed in the audited financial statements. A summary of some of the policies are: The General Fund is accounted for using the modified accrual basis of accounting. Revenues are recognized when they become measurable and available as net current assets. Expenditures are generally recognized when the related fund liability is incurred. 265 278 COMBINED STATEMENT -ALL FUNDS (Note 1) Fund Balances 2017-2021 and Summary 2021 Revenues, Excess Revenues and Fund Balance (Fiscal Years Ended December 31) Fiscal Year Ended December 31, 2021 Revenue Incl. Transfers Property Governmental Fund Types (2): 2016 2018 2019 2020 Tax Total Revenue Over (Under) Fund Expenditures Balance General Fund * S 19,398,971 23,057,567 26,678,148 26,174,371 $ 16,397,087 $ 69,062,691 $ 8,620,941 $ 34,795,312 Special Revenue Funds: Debt Service * 184,195 4,150,506 3,455,359 3,126,865 2,690,171 5,344,908 Motor Fuel Tax $ 2,744,472 2,431,135 2,465,613 3,789,560 S- $ 3,326,954 $ 690,720 $ 4,480,280 Community Development Block Grant - - - - - 703,509 - - Refuse Disposal 1,442,645 1,320,754 1,167,139 1,020,102 - 4,889,774 70,948 1,091,050 Asset Seizure 172,908 141,255 135102 120,643 - 783 (15,138) 105,505 DEA shared Funds 20,194 20,308 SU45 51,989 - 5,883 5,883 57,872 DUI Fines 140,928 137373 143,435 149,962 - 2,811 (1,285) 148,677 Foreign Fire Tax Fund 352,423 398,231 438,552 413,755 - 102,357 65,059 478,814 Rosiness District Fund - - - - - 1,473,245 - - - Police &Fire Building Construction* - 31,720,180 14,141,970 44,134 - 126 (44,133) - Prospect/Main TIF* 3,945,027 698,930 8,532,044 25,991 1,348,000 1,483,668 369,790 395,781 Total Special Revenue 8,818,597 36,868,166 27,074,400 5,616,136 $ 1,348,000 $ 11,989,110 1,141,843 6,757,979 Debt Service * 184,195 4,150,506 3,455,359 3,126,865 2,690,171 5,344,908 (1,344,380) 1,782,485 Capitol Projects (3) 3,579,214 5,577,761 5,662,051 5,521,975 - 9,480,695 2,643289 8,165,264 Total Governmental S 31,980,977 69,654,000 62,869,958 40,439,347 $ 20,435,258 $95,877,404 $ 11,061,693 $ 51,501,040 Proprietary & Fiduciary Fund Types S 36,991,120 $ 69,755,579 $ 69,077284 $ 43,541,521 551,871,612 Capital Project Funds 3,209,472 5,949,833 Enterprise Funds (4): 5,325,291 7,948,358 Water &Sewer 7,577,274 12,425,604 19,536350 17,631,177 16,311,963 Water and Sewer * 41,327,962 40,157,409 38,571493 42,982,296 S- $ 17,735,543 $ 2,165,0002 45,147,298 Village Parking System 704,700 725,953 549,156 430,837 - 56,289 (120,291) 310,546 Internal Service Funds (5) 19,736,825 21,115,612 22,226,789 23,618,874 - 15,088,678 2,133,730 25,752,604 Pension Trust Funds: with General Fund Police Pension 71,069,062 66.374,108 78,333544 86,908,231 - 16,144,827 9,566,101 96,474,332 Firefighter's Pension 66,265,340 62,398,530 71,227,941 80,459,469 - 11,456,030 4,557,759 85,017,228 Total Proprietary & Fiduciary $ 199,141,779 $ 190,771,612 $ 210,909,923 S 234,399,707 S- $ 60,481,367 $ 18,302301 $ 252,702,008 Total All Funds (Memo Only) $ 231,122,756 $ 260,425,612 $ 273,779,881 S 274,839,054 $ 20,435,258 $ 156,358,771 $ 29,363,994 $ 304,203,048 * Designated as major funds. Cash & Investments at 12/31 (6): 2017 2018 2019 2020 2020 General Fund S 14,814,727 $ 16,672,691 $ 20,838,531 $ 20,649,384 529,375,181 Internal Service Funds 12,210,417 11,769,387 11,707300 13,783,192 14,008,929 Police & Fire Building Construction - 31,708,378 17,938,945 153,863 - Prospect & Main TIF 712,311 9,716,685 10,018 341,682 Other Special Revenue Funds 9,803,081 4,792,342 5,427,434 5,825,227 6,378,108 Debt Sen ice Funds 162,895 4,100,470 3,448,379 3,119,837 1,767,712 Subtotal S 36,991,120 $ 69,755,579 $ 69,077284 $ 43,541,521 551,871,612 Capital Project Funds 3,209,472 5,949,833 6,261008 5,325,291 7,948,358 Water &Sewer 7,577,274 12,425,604 19,536350 17,631,177 16,311,963 Other Enterprise Funds 531,623 578367 576,470 446,638 327,112 Pension Trust Funds 137,068,690 128,571,320 149,345,705 167,194,366 181,536,181 Other Fiduciary Funds+ 1,126,624 1,115,737 - - - Total S 186,504,803 $ 218,396,440 $ 243,797817 S 234,138,993 $257,995,226 + Starting year 2019 Other Fiduciary Funds are merged with General Fund 266 279 Notes: 1. This condensed financial information for the years ending December 31, 2017-2021 has been excerpted from the full Annual Comprehensive Financial Reports of the Village. The accounting policies of the village conform to GAAP and are disclosed in the audited financial statements. A summary of some of the policies are: All Governmental Funds are accounted for using the modified accrual basis of accounting. Revenues are recognized when they become measurable and available as net current assets; expenditures are recognized when the related fund liability is incurred. All Proprietary Funds and Pension Trust Funds are accounted for using the accrual basis of accounting. The Village's Annual Comprehensive Financial Report for the year ended December 31, 2021 included an unmodified "Independent Auditor's Report". Similar unqualified/unmodified opinions were included in the Village's Annual Comprehensive Financial Reports for the years ending December 31, 2017-2020. The "Independent Auditor's Report" included in the latest audit states, in part: "In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-iype activities, each major fund, and the aggregate remaining fund information of the Village of Mount Prospect, Illinois, as of December 31, 2021, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. " 2. The Village's property tax revenue recognition policy conforms to the provisions of "NCGA Interpretation 3, Revenue Recognition Property Taxes." The current net tax levy receivable is recognized in the balance sheet along with a corresponding amount of deferred revenue. In addition, the debt service payments and liabilities related to the current net tax levy are not reflected in the Debt Service Funds; the un -matured principal is reflected in the General Long -Term Debt Account Group. 3. Includes the Capital Improvement Fund, which accounts for the resources used to provide for mid- sized capital projects. Financing is provided by one-quarter cent home rule sales tax, developer contributions, interfund transfers, investment income, and bond proceeds. 4. Fund balances shown for the Enterprise Funds are total fund equity, including contributed capital and retained earnings, and the column "Revenue Over Expenditures" represents the change in that amount. 5. The Village has created a new Police and Fire Building Construction fund during the year 2018. This fund is created to account for bond proceeds and construction cost associated with new Police and Fire buildings. 6. The Village created a Risk Management Fund in 1984 to account for the servicing and payment of claims for liability, property, casualty coverage and Workers' Compensation. Financing is provided by charges to the various Village funds. The Village created a Vehicle Replacement Fund in fiscal year 1991 to account for the acquisition and depreciation of Village vehicles. Financing is provided by charges to the General, Water and Sewer, and Parking Funds. The Village created a Vehicle Maintenance Fund in 1996 to account for maintenance and repair of all Village vehicles except Fire Department vehicles. In 1997, the Village created a Computer Replacement Fund to account for the acquisition and depreciation of Village computer hardware. 7. Excludes agency funds. 267 280 CAPITAL ASSETS (Note) (December 31, 2021) Note: Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, storm sewers, and similar items), are reported in the applicable governmental or business -type activities columns in the government -wide financial statements. Capital assets are defined by the Village as assets with an initial, individual cost of more than $20,000, except for infrastructure for which the cost is $50,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. 268 281 Governmental Business Type Activities Activities Capital Assets Not Being Depreciated Capital Assets Not Being Depreciated Land $ 15,612,320 Land $ 17,318,818 Construction in Progress $ 9,632,988 Construction in Progress $ 2,025,897 Total Assets Not Being Depreciated $ 25,245,308 Total Assets Not Being Depreciated $ 19,344,715 Capital Assets Being Depreciated Capital Assets Being Depreciated Buildings $ 79,648,759 Buildings and Improvements $ 4,499,808 Improvements Other Than Buildings 1,516,920 Equipment 5,017,968 Infrastructure and All Other 116,789,872 Infrastructure 42,662,321 Total Capital Assets Being Depreciated $ 197,955,551 Total Capital Assets Being Depreciated $ 52,180,097 Less Accumulated Depreciation $ 103,858,838 Less Accumulated Depreciation $ 23,202,903 Total Capital Assets Being Depreciated, Net $ 94,096,713 Total Capital Assets Being Depreciated, Net $ 28,977,194 Net Assets $ 119,342,021 Net Assets $ 48,321,909 Note: Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, storm sewers, and similar items), are reported in the applicable governmental or business -type activities columns in the government -wide financial statements. Capital assets are defined by the Village as assets with an initial, individual cost of more than $20,000, except for infrastructure for which the cost is $50,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. 268 281 C@ii.RTIFIF-D PUBIACJ ACCOUNTANTS June 6, 2022 The Honorable Mayor Members of the Board of Trustees Village of Mount Prospect, Illinois 668 N. RIVER ROAD • NAPERVIILLE, ILLINOIS 60563 PHONE_ 630.393.1483 FAX 630.393.2516 www.la«toirba-aohame n.uo m We have audited the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the Village of Mount Prospect (the Village), Illinois for the year ended December 31, 2021. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards (and, if applicable, Government Auditing Standards and the Uniform Guidance), as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated June 6, 2022. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the Village are described in the Note I to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during the year ended December 31, 2021. We noted no transactions entered into by the Village during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the governmental and business -type activities' financial statements were: Management's estimate of the depreciation expense on capital assets is based on assumed useful lives of the underlying capital assets, the net pension liabilities/(assets) are based on estimated assumptions used by the actuary, the total OPEB liability is based on estimated assumptions used by the actuary, and the asset retirement obligation is based on historical costs for similar abandonments, adjusted for inflation. We evaluated the key factors and assumptions used to develop the depreciation expense, net pension liabilities/(assets), the total OPEB Liability, and asset retirement obligation estimates in determining that it is reasonable in relation to the financial statements taken as a whole. The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Any material misstatements detected as a result of audit procedures were corrected by management. 282 Village of Mount Prospect, Illinois June 6, 2022 Page 2 Significant Audit Findings - Continued Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated June 6, 2022. Management Consultations with Other Independent Auditors In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. if a consultation involves application of an accounting principle to the Village's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the Village's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other Matters We applied certain limited procedures to the required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the other supplementary information and supplemental schedules, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with the accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on the introductory section and statistical section, which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, and we do not express an opinion or provide any assurance on it. 283 Village of Mount Prospect, Illinois June 6, 2022 Page 3 Restrictions on Use This information is intended solely for the use of the Board of Trustees and management of the Village and is not intended to be, and should not be, used by anyone other than these specified parties. We wish to express our gratitude to the Board of Trustees and staff (in particular the Finance Department) of the Village of Mount Prospect, Illinois for their valuable cooperation throughout the audit engagement. zda&4" & t OWN, .2-2, P LAUTERBACH & AMEN, LLP 284